Overview

• Around 75% of economists in a July Reuters poll expect the RBI to keep its key rate at 5.50% on August 6 and most forecast a 25-basis-point cut by year-end.
• Governor Sanjay Malhotra said future rate decisions will depend on projected inflation and growth outlooks rather than current CPI readings.
• Retail inflation has fallen to 2.1%, its lowest in over six years, making price stability the RBI’s primary objective under its neutral policy stance.
• The central bank plans to retain non-rate instruments and is consolidating over 8,000 regulations into 33 master directions to streamline its regulatory framework.
• The RBI has ruled out allowing corporate groups to obtain banking licences, citing inherent conflict-of-interest concerns.