Day 2 of RBI MPC meeting: IDFC First Bank says pause, Emkay predicts cut- What’s next?
IDFC First Bank predicts that RBI will maintain its current stance in October but may cut rates in December. Analysts are uncertain if a rate cut is necessary given the uncertain growth outlook. Trade tensions with the US could counteract the benefits of GST cut, leading to a decline in GDP growth. Emkay predicts a 30% chance of RBI delaying a rate cut due to lower than expected inflation.