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The Reserve Bank of India's Monetary Policy Committee is expected to retain the benchmark lending rate at 5.5%, despite expectations of further rate cuts down the line. The RBI MPC will announce the decision on October 1.

Of the 37 economists polled by Bloomberg, 11 expect a status quo, while the rest expect a 25 basis point cut. The repo rate is currently at 5.5%.

'A rate cut shall be a close call,' stated a note by Nuvama. While weak demand, steep tariffs and benign inflation call for the RBI to complement the government’s GST reform with a rate cut, the MPC may like to wait and see the effect of tax cuts on demand, it stated.

Besides, the anticipated rise in CPI and ongoing INR we

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