Will RBI’s MPC Hold Fire On Rate Cuts And Opt For Another Pause?

The Reserve Bank of India’s Monetary Policy Committee (MPC) decision is shaping up to be a close call, with economists divided between a rate cut and a pause amid ongoing growth concerns. SBI Research, in its latest report, noted there is merit in a rate cut at the upcoming policy but stressed it would require careful communication, as the threshold for easing has become higher post-June. The report suggested a 25 basis point cut would be most appropriate. On the other hand, several bankers have ruled out an immediate cut, though they still expect one more reduction during this fiscal. If the RBI holds rates, it would mark the second consecutive pause after August. Since February, the central bank has already lowered the repo rate by 100 basis points before opting to hold in the last polic