Will RBI press the pause button on Tuesday?

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For the first time in its history, the Reserve Bank of India's (RBI) monetary policy will be decided by a six-member committee and not by the governor alone. However, the data points that the committee will be looking at would be no different. Here are some select data heads that would determine the outcome of the policy. Gauging by the graphs here, the data set is supportive of a rate cut. But many economists say a rate cut is not warranted, as favourable data points are a relatively new trend and the central bank would do well to observe the trend taking hold before moving for a rate cut. Besides, a rate cut at this point, just before the maturity of $26-billion FCNR (B) deposits, would go wasted. Six out of the 10 participants in a Business Standard poll of economists, bankers and market participants said the RBI may pause this time, but a rate cut in December is inevitable.
Anup Roy decodes the numbers.