RBI to cut rates in December to 6.25%, say narrow majority of economists: Reuters poll
Inflation unexpectedly spiked to 5.49% in September, but was forecast to cool to an average 4.9% this quarter and drop to 4.6% in January-March, giving the Reserve Bank of India (RBI) room to ease policy.
The central bank has held interest rates at their highest since early 2019 for the past 10 meetings.
Governor Shaktikanta Das recently said the balance between inflation and economic growth was «well-poised» and inflation was projected to moderate next quarter.
A change in stance to 'neutral' this month and economists now expecting a slight slowdown in growth has tipped the scales slightly in favour of a rate cut.
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