New Delhi, Oct. 7 -- After announcing a 25bps rate hike, Reserve Bank of India (RBI) Governor Sanjay Malhotra said the rate cuts in the near-term are unlikely given the prevailing economic conditions.

He indicated that the central bank's next policy action could therefore be either a rate hike or a pause, depending on how the economic outlook and conditions develop.

"The duration and extent of the rate hike cycle, therefore, would be contingent on the actual growth inflation development and outlook, especially that of underlying inflation, extent of broadening of price pressure, and speed round effects on the supply shock," he said.

On Wednesday, RBI Monetary Policy Committee (MPC) unanimously increased the repo rate by 25 basis points...