Core Viewpoint - A report from the State Bank of India (SBI) suggests a potential 25 basis points (bps) cut in the repo rate due to benign inflation, although most economists anticipate the Monetary Policy Committee will maintain the current rate during the announcement on October 1 [1] Group 1 - The SBI report indicates a favorable inflation environment that could justify a rate cut [1] - Economists are divided on the outlook, considering factors such as GST rationalization, US tariffs, and overall growth stability [1]

Group 1 - The GST Council approved a significant restructuring of the GST framework, eliminating the 12% and 28% slabs and introducing a special 40% rate for 'sin' goods like tobacco and luxury items [4][7] - GST rates on essential items such as packaged food, shampoo, toothpaste, and shaving cream have been reduced to 5%, while rates for small cars, dishwashers, air conditioners, and televisions have decreased from 28% to 18% [4][7] - Economists anticipate that these changes, effective from the start of the festive season, will enhance domestic consumption amid uncertain global demand [5][7] Group 2 - The new GST rates are expected to benefit 11 of the top 30 consumption items, which account for about one-third of an average consumer's monthly spending [5][7] - The impact of the GST changes will be monitored through price movements, the Consumer Price Index (CPI), and GST collections [5][8] - The average GST collection in the first five months of FY26 was ₹2.01 lakh crore, an increase from ₹1.83 lakh crore in the same period last year [6][8]