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RBI Faces Dilemma on Policy Rates Amid Strong GDP Growth and Low Inflation
The Reserve Bank of India (RBI) is expected to keep policy rates steady in its upcoming December MPC meeting, despite the October Consumer Price Index (CPI) inflation dropping to a record low. The country’s GDP growth remains strong, projected at above 7% for Q2 FY26, adding to the RBI’s dilemma. While inflation is under control, the central bank faces challenges in balancing growth and inflation risks. Analysts suggest that the RBI may opt for a wait-and-watch approach to assess the full impact of previous rate hikes on economic growth.
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- RBI
- policy rates
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neutral
RBI Faces Dilemma on Policy Rates Amid Strong GDP Growth and Low Inflation
The Reserve Bank of India (RBI) is expected to keep policy rates steady in its upcoming December MPC meeting, despite the October Consumer Price Index (CPI) inflation dropping to a record low. The country’s GDP growth remains strong, projected at above 7% for Q2 FY26, adding to the RBI’s dilemma. While inflation is under control, the central bank faces challenges in balancing growth and inflation risks. Analysts suggest that the RBI may opt for a wait-and-watch approach to assess the full impact of previous rate hikes on economic growth.
Tags:
- RBI
- policy rates
1 min read
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RBI is expected to maintain policy rates in December, balancing strong GDP growth and low inflation, presenting a policy dilemma for the central bank.
The Reserve Bank of India (RBI) is expected to keep policy rates steady in its upcoming December MPC meeting, despite the October Consumer Price Index (CPI) inflation dropping to a record low. The country’s GDP growth remains strong, projected at above 7% for Q2 FY26, adding to the RBI’s dilemma. While inflation is under control, the central bank faces challenges in balancing growth and inflation risks. Analysts suggest that the RBI may opt for a wait-and-watch approach to assess the full impact of previous rate hikes on economic growth.
The Reserve Bank of India (RBI) is expected to keep policy rates steady in its upcoming December MPC meeting, despite the October Consumer Price Index (CPI) inflation dropping to a record low. The country’s GDP growth remains strong, projected at above 7% for Q2 FY26, adding to the RBI’s dilemma. While inflation is under control, the central bank faces challenges in balancing growth and inflation risks. Analysts suggest that the RBI may opt for a wait-and-watch approach to assess the full impact of previous rate hikes on economic growth.
Tags:
- RBI
- policy rates
- RBI
- policy rates
- GDP growth
- inflation
- monetary policy