Goldman Sachs has released a forecast suggesting that the Reserve Bank of India (RBI) may cut interest rates only slightly starting from the March 2025 quarter, with cumulative cuts of 50 basis points by June. The investment bank has also scaled down its growth forecast for India to 6.4% for FY25 from 6.5% earlier, citing slower credit growth due to macro-prudential tightening by the RBI. The economists at Goldman Sachs believe that the RBI will proceed cautiously due to a stronger US dollar and fiscal consolidation efforts. The forecast suggests that GDP growth may decelerate to 6.3% year-on-year in CY25. Despite this, the investment bank remains optimistic about India’s long-term structural growth story.

Source: https://economictimes.indiatimes.com/news/economy/policy/goldman-sachs-forecasts-shallow-rbi-rate-cut-starting-march-2025-lowers-indias-fy25-growth-outlook-to-6-4/articleshow/115533904.cms?from=mdr