The Reserve Bank of India (RBI) is facing pressure to consider interest rate cuts, with discussions intensifying in Delhi. The Chief Economic Advisor (CEA) has suggested that the Monetary Policy Committee (MPC) may need to exclude food inflation from its 4 percent target, arguing that factors beyond monetary policy, such as climate conditions, influence food prices.

This proposal has sparked debate among economists and policymakers, with some dismissing it as the CEA"s personal opinion. As the term of the RBI governor nears its end, there are increasing calls for rate cuts, despite strong economic growth and the Federal Reserve"s decision to maintain rates. This ongoing discourse reflects a significant shift in the economic landscape and raises questions about the independence of the RBI"s monetary policy in the face of growing political pressure.