New Delhi, June 4 -- As the Reserve Bank of India's Monetary Policy Committee (MPC) begins its two-day meeting in Mumbai to deliberate on the key policy rates, economists are divided over the quantum of the rate cut that the central bank should undertake in its June 6 announcement.

While some economists argue for a more aggressive 50 basis point (bps) cut to reinvigorate growth, others are in favour of a cautious 25 bps reduction, citing macroeconomic stability and external risks.

The divergence in opinion stems from the evolving macroeconomic landscape, where retail inflation has moderated significantly, falling below the 4 per cent mark, and the outlook for domestic growth remains robust.

However, concerns over global monetary trends...