Statement — The Reserve Bank of India (RBI) cut the bank rate by 25 basis points to 6.0%. The bank rate is an indicative rate for the banking system.\nQuestion — Which conclusion necessarily follows?

Introduction / Context:
A policy rate cut is typically a signal toward easier financial conditions. We must decide whether a system-wide bias to soft rates is implied, and whether banks will “likely” cut lending/deposit rates.

Given Data / Assumptions:

• Bank rate cut by 25 bps to 6.0%.
• Bank rate is “indicative” for the system.

Concept / Approach:
Conclusion II is an interpretive restatement of what such a cut signals (a tilt toward a soft-rate regime). Conclusion I predicts subsequent pricing by banks; while common, it is not logically guaranteed because pass-through can be sticky or delayed.

Step-by-Step Solution:

Verification / Alternative check:
If banks choose not to cut immediately due to liquidity/funding mix, II still holds while I may fail, showing only II is necessary.

Why Other Options Are Wrong:
“Either” and “neither” mischaracterise the policy signal; selecting I alone overstates certainty of pass-through.

Common Pitfalls:
Treating market transmission as automatic.

Final Answer:
if only conclusion II follows