New Delhi: Reserve Bank of India (RBI) may cumulatively cut the key interest rate in the range of 125-150 basis points this fiscal amid benign inflationary patterns, an SBI Research report said on Monday.

The study suggested that the central bank should go for ‘jumbo’ rate cuts of 50bps as it would be more effective. The sharp moderation in consumer price index based inflation, hitting a 67-month low of 3.34 per cent in March 2025 due to sharp correction in food inflation, bodes well for lowering the average CPI headline forecast for FY2025-26 below 4 per cent now (with below 3% in Q1FY26), the report said.