Chennai, Dec. 2 -- Top economists are divided on whether the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) will alter the repo rate at its upcoming meeting.
The committee meeting is scheduled to be held between Dec 3-5. At its previous meeting, the MPC held the repo rate steady at 5.5 percent. Economists who anticipate a rate cut point to persistently low inflation as the key driver. The repo rate is the rate at which the RBI lends to commercial banks.
Calling the upcoming decision a "close call," Madhavi Arora, Chief Economist at Emkay Global Financial Services, noted that another significant undershoot in inflation would be hard for the MPC to overlook.
"FY26E inflation is now tracking below 2 percent, implying a furthe...