<h1>Bank research unit urges 25bps policy rate cut on October 1 citing benign CPI and GST rate rationalisation</h1> A research unit of a major bank recommends a 25 basis-point cut in the central bank's policy rate at the upcoming Monetary Policy Committee meeting on October 1, arguing CPI inflation will remain benign-partly due to recent GST rate rationalisation-while other economists favor a status quo to assess tariff and geopolitical fallout. The central bank cut the repo by 100 bps earlier in 2025 and recently paused; studies show strong pass-through of cuts to lending and deposit rates. External central bank easing and lower headline inflation could permit a modest rate reduction later this year.