Mumbai, July 18 -- The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) may go for another cut in the policy rate of 25 basis points (bps) in the upcoming August policy meeting, bringing it down to 5.25 per cent, according to a report by ICICI Bank.

The report explained that the growth outlook in India remains mixed. While urban demand is weak, rural demand continues to remain strong. Goods exports to the United States are showing improvement, but exports to other regions remain weak.

Considering these trends and the current inflation situation, the report believed that August is the right time for a rate cut.

It stated "we believe this opens up policy space for an additional 25bps rate cut, taking the terminal rate t...