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RBI likely to pause at 5.5% repo rate in August
The Reserve Bank of India is expected to keep the repo rate steady at 5.5% in its August 6 policy review.
After three straight cuts and super-low inflation in June (just 2.1%), the RBI seems set to wait and see how those moves play out before making any more changes—especially since the economy's holding up well.
Rate cuts already factored in global pressures
Economists say earlier rate cuts already took global pressures like US tariffs into account.
CareEdge Ratings points out that not all banks have passed on lower rates yet, so a pause gives everyone time to catch up.
Icra's Aditi Nayar thinks the surprisingly low inflation could even lead the RBI to lower its future forecasts, but for now, most expect them to stay cautious and keep an eye on growth risks before acting again.