Goldman Sachs forecasts shallow RBI rate cut starting March 2025, lowers India's FY25 growth outlook to 6.4%

Goldman Sachs Forecasts Shallow RBI Rate Cut Starting March 2025, Lowers India’s FY25 Growth Outlook to 6.4%: Goldman Sachs has forecasted a shallow rate cut by the Reserve Bank of India (RBI) starting in March 2025, citing moderating inflation and a need to support economic growth. The investment bank has also lowered India’s FY25 growth outlook to 6.4%, down from its previous estimate of 6.8%. This revision reflects concerns over global economic uncertainties, rising interest rates, and domestic challenges such as high inflation and fiscal constraints. Goldman Sachs expects the RBI to adopt a cautious approach to monetary policy, balancing the need to control inflation with supporting economic recovery. The forecast suggests that the Indian economy will face headwinds in the near term, but the long-term growth prospects remain positive, driven by structural reforms and strong macroeconomic fundamentals.