RBI likely at end of rate-cut cycle, to opt for long pause as inflation risks tilt up

The Reserve Bank of India (RBI) has likely come to the end of its rate-cutting cycle and is expected to opt for a long pause, as there appears to be limited room to lower interest rates further unless the new series of CPI and GDP throw up unforeseen surprises, according to a report by Bank of Baroda.

- TBG NETWORK

The report highlighted that recent policy signals from the RBI, including its neutral stance, indicate that the Monetary Policy Committee (MPC) is now focused on supporting growth while preserving financial stability, rather than continuing with rate cuts. It stated, “We believe that the RBI has come to an end of its rate cut