By Samiran Chakraborty, Chief Economist, India, Citibank

In the August Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) decided to press pause on the rate easing cycle after 100 basis points (bps) of rate cuts and indicated a longish hold. After that, there has been a series of fresh global and local developments that has made the October policy a “live” one again.

To start with, the US levied a higher-than-expected tariff of 50% on Indian exports, followed by a significant increase in H-1B visa fees. There is a case for further easing of monetary policy to mitigate the growth impact in the second half of FY26 from these external shocks if the MPC decides to look forward, rather than at the rearview mirror where most of the growth indicators have been robust til

See Full Page