Economists say MPC's rate cut in February may not be a done deal

Inflation hit a 14-mth high of 6.2% in Oct, breaching MPC's upper tolerance band

Even as the high inflation figure for October has ruled out any possibility of a rate cut by the Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) in December, a rate cut in February also looks uncertain due to global uncertainties. Economists told Business Standard that unless domestic growth slows markedly, the outlook on rate cut remains unclear.

 

 India’s headline inflation touched a 14-month high of 6.2 per cent in October, breaching the MPC’s upper tolerance band of 6 per cent. October’s inflation figure was even higher than September’s (5.49 per cent), driven by a spike in food inflation,