Ever since the Federal Reserve announced to slash the benchmark rate by 50bps, there has been a debate whether the RBI MPC will also go for a rate cut when it meets the next in October.

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.

For the RBI, the global interest rate easing cycle comes with its own set of challenges. If a global rate-cutting cycle accelerates in the near future, the emerging markets including India could face increased capital inflows,