Mumbai, Dec. 8 -- The Reserve Bank of India (RBI), after delivering a 25 basis-point policy rate cut in December, is expected to keep the option open for further monetary easing if global headwinds severely weigh on India's growth outlook, highlighted a report by CareEdge Ratings.

The report noted that on the fiscal front, the government has already provided stimulus through GST rate rationalisation and a lower income tax burden.

However, with limited room for further fiscal support, the responsibility may shift toward monetary policy if growth conditions deteriorate.

The report stated, "Given limited room for further fiscal stimulus, the RBI is likely to keep the option open for further rate cuts if global headwinds severely weigh on ...