Smart GDP growth casts shadow over RBI's December rate cut
mumbai, Dec. 1 -- The Reserve Bank of India's (RBI's) Monetary Policy Committee (MPC) is widely expected to keep the policy rate unchanged on December 5, even as a sizable minority of economists argues that the space created by softening inflation and moderating nominal growth warrants another rate cut.
A Mint poll of 13 economists shows nine expecting a pause, while four of them are anticipating a 25 basis points cut to 5.25%, underscoring how finely balanced the December decision is likely to be. (One basis point equals 0.01%.)
The divergence of views reflects a rare point for India's macro economy with record-low inflation, surprisingly strong real gross domestic product (GDP) prints, weakening nominal GDP growth, and emerging external s...
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