New Delhi, Sept. 19 -- As the US Federal Reserve has reduced benchmark interest rates by 25 basis points and indicated additional rate cuts in the coming months, expectations have risen that the Reserve Bank of India (RBI) will follow suit and cut rates in its next policy decision on October 1.

After delivering a larger-than-expected 50 basis point rate cut in June this year, the RBI kept the repo rate unchanged at 5.5 per cent and maintained its policy stance as "neutral" in its August policy meeting.

With the start of the Fed rate reduction cycle, the RBI has the opportunity to cut rates and further accelerate India's economic growth without worrying much about inflation and the rupee's weakness.

Monetary easing lowers borrowing cost...