RISING INFLATION MAY PUSH RBI TO GO WITH NEUTRAL STANCE FOR LONG: RESEARCH

The research stated on the rationale that ifinflation remains sketchy in the coming months, the apex bank will consider growth as the criteria for rate cut.

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The soaring figures of retail inflation in September could force the Reserve Bank of India (RBI) to continue with neutral stance for a longer duration, stated SBI research, adding that "first rate cut could be based on growth, and need not be inflation." The research stated on the rationale that if inflation remains sketchy in the coming months, the apex bank will consider growth as the criteria for rate cut.

"Looking ahead, evolving food prices will determine domestic inflation, though we understand an average print in the range of 4.5-4.6 per cent for FY'25 (with an upside bias) looks more plausible, despite the outlier reading of today," the report added.