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flag India's inflation drops, may lead to interest rate cuts by RBI, focusing more on economic growth.

flag India's inflation is forecast to average 4.8% in 2025, with a January decline in consumer price inflation (CPI), mainly due to lower food prices, potentially allowing the Reserve Bank of India (RBI) to cut interest rates by 25 basis points. flag The RBI may focus more on economic growth, though the depreciating rupee must be closely monitored. flag The Monetary Policy Committee (MPC) has a neutral stance, with future rate cuts depending on economic data.

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