<h1>Interest Rates Set for Major Cuts: SBI Research Predicts 125-150 Basis Points Reduction in Fiscal Year 2026</h1> The Reserve Bank of India may implement cumulative interest rate cuts of 125-150 basis points in fiscal year 2026, according to an SBI Research report. The potential rate reduction is driven by low inflation, which hit a 67-month low of 3.34% in March 2025. The study suggests 'jumbo' cuts of 50 basis points could be more effective, potentially bringing the terminal rate to 5.0-5.25% by March 2026, contingent on continued benign inflation and economic conditions.