India, Aug. 7 -- The Monetary Policy Committee (MPC) of the Reserve Bank of India has decided to keep the policy rate and monetary policy stance unchanged at 5.5% and neutral in its August meeting. This comes even as MPC has retained its growth forecast of 6.5% for 2025-26 and brought down its inflation forecast for the fiscal year from 3.7% to 3.1%. What explains MPC's decision in the wake of the ongoing trade deal turbulence with the US which, at the moment, includes the threat of additional tariffs over the 25% US president Donald Trump has already announced? Here are three charts which explain what might have explained RBI's decision.

Published by HT Digital Content Services with permission from Hindustan Times....