The three-day closed-door Monetary Policy Committee (MPC) meeting, which commenced on Monday (September 29, 2025), has raised hopes of a rate cut.

The October policy comes within weeks of a cut in Goods and Services Tax (GST) and at a time when demand is likely to be created in the domestic market amid the tariff pressure.

Analysts are divided on whether the rate fixing panel would vote for a rate cut or maintain status quo, considering the positive impact of GST cut on GDP growth and to further control inflation.

According to Investment Information and Credit Rating Agency (ICRA), the MPC is likely to maintain status quo on the repo rate. This view is supported by the positive impact of GST reforms on demand, stronger-than-expected Q1 FY 2026 GDP growth, and an inflation trajectory tha

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