Split verdict on rate action

8 economists out of 15 expect pause, rest see 25 bps rate cut

- CHRISTINA TITUS, KSHIPRA PETKAR & MAHESH NAYAK

ECONOMISTS ARE SHARPLY divided on whether the Monetary Policy Committee (MPC), slated to meet on December 5, will decide to lower the policy repo rate from the current 5.5%.

Of the 15 economists polled, eight are not expecting a cut while the others anticipate a reduction of 25 basis points (bps). Interestingly, two economists changed their views from a cut to a pause after the GDP growth for the September quarter came in at a strongerthan-expected 8.2%.