Market expects easing as firms delay fundraising. RBI says cuts are possible, but the MPC will decide based on its December review
October inflation fell to 0.25 percent from 1.4 percent. With price pressures easing, expectations of policy easing have strengthened
Food inflation is now minus 5 percent, down from over 10 percent a year ago. Core inflation stays near 4 percent, showing food is the main driver
Further cuts depend on how inflation trends. Strong monsoon and reservoir levels suggest food prices may remain supportive in coming months
Strong GDP growth and GST-led demand may limit the impact of a small rate cut. Trade deals with the US and Canada could matter more for momentum
A cut may pressure the rupee and foreign debt flows. With inflation low, depreciation may be acceptable and could give exporters some support