RBI likely to hold rates steady in upcoming meet
The RBI is expected to keep interest rates steady during its August 4-6 meeting, after a flurry of cuts earlier this year.
With inflation dropping way below target and growth still a concern, the central bank seems ready to take a breather and see how things play out before making any more moves.
Inflation dropped to 3.5% in June
Prices cooled off big time in June, which is well under the RBI's usual 4% goal. That's why we saw those earlier rate cuts.
But don't get too comfy: inflation could creep back up above 4% by late 2025, so the RBI has shifted its focus for now.
Why the RBI is taking a breather
Even with global drama like US tariffs and trade tensions, India hasn't felt much heat thanks to limited exposure.
The RBI wants to see if their recent moves will boost the economy before making any new calls.
As Governor Sanjay Malhotra hinted, these bold steps are about supporting steady growth while keeping an eye on what comes next—a cautious but thoughtful approach that could affect loans, savings, and jobs down the line.