‘Everybody is waiting for RBI’: Piyush Goyal hints at room for rate cut as inflation hits series low

Commerce Minister Piyush Goyal

"Everybody is waiting for the Reserve Bank of India to reflect on the current inflation numbers," commerce minister Piyush Goyal said on November 28, a week before the Reserve Bank of India meets for its bi-monthly policy review.

Speaking at an event in New Delhi, Goyal said, "Inflation in the last 10 years has been the lowest decadal inflation ever in history since Independence and of course, this year will be very low inflation. Of course, everybody is waiting for RBI to reflect on the current inflation numbers I believe."

India’s retail inflation in October hit a series low of 0.25 percent on favourable base effect and easing food prices.

Inflation has now averaged 2.22 percent in the first half of FY26, well below the RBI's medium-term target of 4 percent.

The central bank recently lowered its FY26 inflation forecast to 2.6 percent from 3.1 percent, while maintaining a cautious stance amid uncertainties in global energy and food markets.

According to a majority of economists polled by Reuters, the Reserve Bank of India will cut its key interest rate by 25 basis points to 5.25 percent on December 5.

RBI governor Sanjay Malhotra said this week that recent data suggested there was still scope to cut interest rates. The central bank has held rates since August, after a cumulative 100 basis points of cuts in the first half of the year.

In its last policy meeting in October, the RBI kept the repo rate unchanged at 5.5 percent.

Goyal also urged the industry to bank on self-reliance at a time when trade is being weaponised.

"We have all seen trade being weaponised, (and realised) the importance of having trusted partners in the world and to work with countries who believe in fair trade and equal opportunities," Goyal said.

India is negotiating free trade agreements (FTAs) with a slew of countries and blocs, including the United States, European Union and Oman.

The RBI's monetary policy committee will meet from December 3 to 5.