New Delhi, Oct. 1 -- Caught between the devil and the deep sea-read, between cutting rates too much, too fast, potentially leading to higher inflation, and continuing with a cautious policy that could potentially harm growth-the Reserve Bank of India's (RBI) rate-setting Monetary Policy Committee (MPC) responded as many saner voices had predicted: By opting to stay put till the mist clears.

So, as at the last MPC meet in August 2025, the policy repo rate, or the rate at which RBI pumps liquidity into the system, was kept unchanged at 5.5% while the monetary policy stance was retained at neutral.

This is not surprising. Speaking to a television channel about the MPC's decision to maintain the status quo in August 2025, one of its members...