RBI policy: Prelude to future rate cuts? Inflation numbers hold the key

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RBI policy: Prelude to future rate cuts? Inflation numbers hold the key - Business Standard

Quick Summary:

Going by the forecasts made by the Reserve Bank of India (RBI) on inflation for the balance quarters, there will be an uptick to 4.8 per cent in the third quarter (Q3), which will be the October-December period.

RBI MPC changes stance to neutral; keeps repo rate unchanged at 6.

The policy has presented a balanced view of risks and signaled that while it does feel that conditions would be improving on the inflation front, one cannot be too sure.