New Delhi, Dec. 4 -- Even as India's growth-inflation dynamics remain largely favourable and geopolitical uncertainties persist, the Reserve Bank of India (RBI) may announce a 25 basis points rate cut on Friday, December 5. The central bank will likely take note of the weakness in manufacturing even though headline numbers are strong.

India's Q2FY26 GDP growth surged to a six-quarter high of 8.2%, but the industrial production grew by just 0.4% year-on-year in October, its slowest pace of expansion in 14 months. On the other hand, India's retail inflation plunged to a record low of 0.25% in October.

Experts believe the central bank will take note of the nominal GDP, which grew by 8.7% during the September quarter after falling to a thre...