When the Reserve Bank of India’s (RBI) monetary policy committee (MPC) meets between December 3 and December 5 to review the interest rates, it will face the dilemma of strengthening a dwindling economy while keeping a check on inflation at around 4 per cent. Analysts, however, see the MPC slashing rates by up to 25 basis points (bps), along with a marginal cut in FY20 gross domestic product (GDP) growth forecast.
Repo rate -- the rate at which banks borrow from the apex bank -- stands at 5.15 per cent, lowest in nine years. A sixth cut this year would