RBI's MPC to Deliberate Rate Cut Amid Inflation Control

The Reserve Bank of India's Monetary Policy Committee (MPC) has commenced its pivotal three-day meeting in Mumbai to determine the direction of the nation's policy rates. During this session, committee members will evaluate the current economic landscape, deliberate on the repo rates, and decide if adjustments are necessary to bolster growth while carefully managing inflation.

With the conclusion on the horizon by Wednesday, October 1, the key focus will be safeguarding economic stability through potential policy revisions. RBI Governor Sanjay Malhotra is slated to reveal the committee's decision at 10 AM, a development keenly observed by market participants, businesses, and policymakers due to its likely influence on borrowing costs and broader economic dynamics.

In the context of the previous decision in August, where rates were held steady at 5.5 percent, a State Bank of India report suggests a feasible 25 basis points rate cut. This anticipation arises from favorable inflation trends and an optimistic economic outlook. The communication from central banks remains critical as they navigate this decision, especially with CPI forecasts suggesting continued moderation through FY27.