New Delhi, Nov. 23 -- The central bank's monetary policy review in December comes at a time when inflation is benign and growth robust. A rate cut at the meeting has been signalled and is widely anticipated. Yet, in the current global and domestic backdrop, the case for caution is stronger than ever.

Based on recent guidance from the Reserve Bank of India (RBI), inflation is forecast at 2.6% for 2025-26, undershooting its 4% target. Growth remains firm, with RBI projecting the Indian economy to expand 6.8% this fiscal year. For the first quarter of 2026-27, RBI has forecast inflation and growth at 4.5% and 6.4%, respectively. These projections indicate price pressures inching up while the economy continues to operate close to its potenti...