RBI’s December MPC under spotlight as disinflation gathers pace

RBI’s next MPC may face a tough tradeoff: rate cuts amid disinflation vs risks to rural demand.

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RBI’s December MPC under spotlight as disinflation gathers pace

RBI’s December MPC under spotlight as disinflation gathers pace
The RBI’s December monetary policy meeting is gaining significance as India’s inflation slides rapidly. CPI hit a record low of 0.25%, while WPI dropped to –1.21%.  
With input costs falling dramatically, the RBI may lean toward a rate cut — but deflationary risks and rural demand pressure remain key concerns. The central bank must balance disinflation with growth support in a challenging macroeconomic landscape.
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  • india