Overview

• The repo rate stands at 5.5% after three back-to-back reductions totaling 100 basis points since February.
• The three-day Monetary Policy Committee meeting began August 4, with its decision scheduled for August 6.
• A Reuters poll found 44 out of 57 economists anticipate a hold to assess the transmission of prior cuts.
• Some analysts, including Crisil and SBI Research, argue for a final 25 basis point cut given inflation at a six-year low and a 25% US tariff shock to growth.
• Governor Sanjay Malhotra has emphasized that future rate actions will depend on forecasts for growth and inflation rather than current levels.