New Delhi, Oct. 1 -- America's tariffs did not just upend India's trade forecasts, they clouded the economic outlook with uncertainty, even though our growth impulses seem intact so far. So, it isn't a surprise that the Reserve Bank of India (RBI) on Tuesday chose not to join forces with the Centre's fiscal stimulus by announcing a cut in its policy rate of interest.

Instead, it kept its main lending rate unchanged at 5.5%. This, even as it lowered its 2025-26 forecast for retail inflation to 2.6% from 3.1%.

In ordinary circumstances, a further dip away from its median 4% target would have led a shift in its attention to growth. But with GDP expansion beating expectations of late, it can afford to wait for clearer signals on where the e...