rbi statement, 2025-10-01
These are (i) given the heightened uncertainty, a rate cut at this point may not have the intended impact; (ii) allow for all past monetary and fiscal measures as well as the ensuing ones (CRR reductions) to work its way through the financial system; and (iii) given no market expectation of a rate cut, any rate reduction would surprise the market, which is detrimental in terms of policy credibility over the medium term.
Sentiment: neutral
Topic: mp_interest_rate