Is the RBI’s decision to keep interest rates unchanged a prudent and well-considered move? Headline inflation has moderated, but is it likely to rise again due to geopolitical tensions and increasing commodity prices?

Suman Chowdhury, chief economist and executive director at Acuite Ratings and Research opines it is likely that RBI will go for a rate cut in the next policy meet in December or later in February 2025, provided the inflationary environment is stable and the headline inflation is consistently within 4.5 per cent in the next few months.

On Wednesday (9 October), the Reserve Bank of India (RBI) maintained the repo rate at 6.5 per cent for the 10th consecutive time. However, the central bank’s Monetary Policy Committee (MPC) shifted its stance from 'withdrawal of accommodation' to 'neutral.'

RBI Governor Shaktikanta Das explains the central bank's decision to maintain interest rates but shift its stance to neutral, citing confidence in inflation cooling down but acknowledging significant risks.

India’s central bank kept its policy rate unchanged as expected but left the door open for potential easing, keeping an eye on inflation that may become sticky if tensions in the Middle East escalate further.

The Reserve Bank of India (RBI) kept its key interest rate unchanged on Wednesday but shifted its policy stance to 'neutral', signaling a possible rate cut in the near future. The move comes amidst signs of a slowing economy and a decline in inflation.

The Reserve Bank of India (RBI) announced on Wednesday that it will keep its key interest rate unchanged at 6.50%, marking the tenth consecutive meeting with no rate adjustment. However, the central banks Monetary

The Reserve Bank of India (RBI) held its key interest rate at 6.50% on Wednesday, while signaling potential for future rate cuts by shifting its policy stance to “neutral” from the previous “withdrawal of accommodation.