Chennai, Oct. 1 -- The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has hit the pause button on the repo rate cut to check the fall out of various other uncertainties like the US tariff, Goods and Services Tax (GST) rate cut and the transmission of past interest rate reductions, said top economists. Experts expect a rate cut in December this year.
"The MPC's decision to hold rates today (at 5.5%) largely hinges on them waiting for clouds to clear around external and domestic uncertainties, including the impact of tariff hikes, GST cuts, and transmission of past easing," said Madhavi Arora, Chief Economist, Emkay Global Financial Services.
Pointing out the dissent by the two external members of MPC wanting an accommodative...