Between a pause and a pivot: What will RBI MPC do on Oct 6?

economictimes.indiatimes.com:

MPC) meeting is being held in a tough global economic environment. The US treasury yields have shot up to a 16-year high even as the US Fed has signalled that it won't be backing down against its inflation fight.

The higher-for-longer message is loud and clear.
The Reserve Bank of India's (RBI) MPC is widely expected to stick to the status quo playbook for now maintaining the repo rate at 6.5 per cent.

It will be in a wait-and-watch mode and will gauge the impact of the cumulative hike of 250 basis points effected since May 2022 before it takes any meaningful decision.
The latest World Bank forecast for India's economic growth at 6.3 per cent should come as a breather even if it's a tad bit lower than the RBI estimate of 6.5 per cent.

India will be the fastest-growing economy in a tough period for the global economy but it won't remain completely insulated. A slowing down of exports and moderation in consumption due to high prices could chip away at some of the growth potential, raising concerns for the rate-setting panel.

As far as inflation is concerned, the second quarter numbers are expected to surpass RBI's projections even as the data is awaited for the month of September. However, the silver lining is that the latest bout of inflation was driven mostly by an increase in prices of food items which are expected to head south once the impact of government measures kicks in and as fresh stock enters markets.

MPC member Jayanth Varma had also told the Reuters Global Markets Forum (GMF) in an interview that there was much greater urgency to bring inflation to within the Reserve Bank of India's (RBI) comfort band than it was to bring it to the mandated medium-term target of the centre of the band.