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RBI’s December MPC under spotlight as disinflation gathers pace
RBI’s next MPC may face a tough tradeoff: rate cuts amid disinflation vs risks to rural demand.
The RBI’s December monetary policy meeting is gaining significance as India’s inflation slides rapidly. CPI hit a record low of 0.25%, while WPI dropped to –1.21%.
With input costs falling dramatically, the RBI may lean toward a rate cut — but deflationary risks and rural demand pressure remain key concerns. The central bank must balance disinflation with growth support in a challenging macroeconomic landscape.