RBI monetary policy: Rate cut too close to call on CPI risks, says survey

Governor Das has recently turned his attention toward the fragile financial sector amid forecasts for a sharp rise in bad loans

The Reserve Bank of India’s policy decision this week is a tricky one to call, with economists split over whether Governor Shaktikanta Das will lower interest rates again to support a fragile economy and banking sector in the face of above-target inflation.

Of the 44 economists surveyed by Bloomberg, 22 expect a 25 basis-point rate cut on Thursday, one projects a 50-point move and the rest see no change. Das has already led the Monetary Policy Committee in cutting interest rates by 115 basis points this year, taking the repurchase rate down to 4 per cent, the lowest since it