The RBI is likely to maintain its wait-and-watch stance and focus on being ‘actively disinflationary’, with a first rate cut likely by December.

Following the US Fed's 50 bps rate cut, the RBI's upcoming policy meeting is under scrutiny. While a neutral stance may emerge in October, economists forecast rate cuts beginning in December, citing ongoing concerns over food inflation and household savings as factors for caution.

The Reserve Bank is unlikely to ease the benchmark policy rate during 2024 given the uncertainty over food inflation, State Bank of India (SBI) chairman C S Setty has said.

At the next MPC meeting to be held between October 7 and 9, the RBI has its task cut out. The US Fed has surprised with a 50 bps rate cut.

Reserve Bank of India (RBI) is unlikely to immediately follow US Fed in cutting the repo rate as its actions are primarily determined by domestic growth-inflation conditions and the outlook.

Setty suggested that a rate cut by the RBI might not occur until the fourth quarter of 2025 (January-March), unless there is significant improvement in food inflation. The Monetary Policy Committee (MPC) led by RBI Governor Shaktikanta Das,

The Federal Reserve’s 50 basis points (bps) rate cut has raised expectations of ripple effects on India’s economy and financial markets, however, analysts say the Reserve Bank of India (RBI) is likely to maintain a domestic-focused approach,

On monetisation of SBI’s stake in some of its subsidiaries, Setty said, there was no thinking in terms of divestment of stake of any of the subsidiaries presently

The first US interest rate cut in four and a half years is here. It's widely expected that other central banks, particularly those in Asia, would follow the US Federal Reserve in bringing down borrowing rates.