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 sector risks, all at once. The MPC is scheduled to announce its policy decision after its December 3-5 meeting. The central bank is also expected to maintain its 'neutral' stance, which allows it to move in either direction. For the quarter ended September, the Indian economy posted a surprising six-quarter high growth rate of 8.2%, significantly above the RBI's 7% projection and 7.2% median estimate in a Mint poll of 15 economists. This growth was also higher than 5.6% in the same quarter last year, and 7.8% a quarter ago. "We expect a status quo on rates on the back of strong GDP growth and the front-loading of fiscal and monetary stimulus," said Standard Chartered Bank's head of India economic research Anubhuti Sahay. She also said ample liquidity already in the system is likely to deliver more effective monetary policy transmission than a rate cut now. Even as economists pointed to record low inflation in recent months contributing to the surge in real GDP growth, the high number significantly dims any expectation of a policy rate cut in December. ICRA's chief economist Aditi Nayar pointed to the "series-low October CPI inflation print" but said that stronger-than-expected Q2 growth print above 8% makes a cut unlikely. Bank of Baroda's chief economist Madan Sabnavis was more categorical, stating that with growth on track and inflation expected to rise toward 4-4.5% next year, he believes "the rate cycle is ideally over." Retail inflation in October plunged to an all-time low of 0.25%, led by a deflation in food, passthrough of GST cuts and supportive base-effects. For FY26, CPI inflation is tracking at 2.0%, lower than RBI's estimate of 2.6%. This resulted in higher real GDP growth, which is calculated by adjusting economic activity at current prices for inflation. Low inflation boosts real GDP growth, while high inflation pulls it down. "A reduction in policy rates may accelerate the shift of resources away from banks into equities and mutual funds, worsening the credit-deposit imbalance," Mandar Pitale, head of financial markets at SBM Bank India said....