India's central bank is expected to keep the benchmark repurchase rate at 6.5% in its upcoming monetary policy meeting, according to a survey of economists conducted by Bloomberg.
The survey revealed that only seven out of 50 economists predicted a rate cut. Instead, attention is now focused on potential measures to boost liquidity, following a surprising decline in economic growth to 5.4% in the July-September period.
RBI Governor Shaktikanta Das has dismissed the possibility of immediate rate cuts, citing persistent inflation above the central bank's 4% target. However, both Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal have expressed support for lower borrowing costs to stimulate economic activity.
As Das nears the end of his six-year term, he faces increasing pressure to strike a balance between controlling inflation and supporting growth.