Economists urge RBI to cut rates in December as inflation hits record low
Economists are encouraging the Reserve Bank of India (RBI) to lower interest rates in December, after consumer inflation dropped to a record low.
They believe this move could give the economy a healthy boost without pushing prices up.
The advice comes right after pre-review consultations that wrapped up on November 19.
Why now? Growth looks steady, inflation is super low
Experts point out that India's economy is expected to grow by around 6.8-7% this year, while inflation could stay as low as 1.8-2%.
October's retail inflation even hit just 0.25%, thanks to cheaper food and GST tweaks.
Soumya Kanti Ghosh from SBI Group says acting quickly with a rate cut could help avoid policy mistakes down the line.
Still, RBI has some big decisions ahead—like dealing with uncertainty surrounding a pending trade agreement with the US—before its next review.