<h1>Public-sector bank urges 25bp central bank rate cut amid benign CPI, warns against withholding easing</h1> A major public-sector bank's research report recommends a 25 basis-point cut to the central bank's policy rate at the upcoming monetary policy meeting, citing unexpectedly benign consumer price inflation and forecasts that CPI will remain near or below the 4% target for the next two fiscal years. The report notes 100 bps of prior easing, a recent pause, and warns against a Type 2 error of withholding a cut; it emphasizes calibrated central-bank communication, expects further CPI reduction from proposed GST rationalisation and base revisions, and references the statutory inflation-targeting mandate of 4% ±2%.