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Markets See a Rate Cut This Week at India's Central Bank But Economist Expect A Hold, Says Scotiabank

BY MT Newswires | ECONOMIC | 09/30/25 07:42 AM EDT

07:42 AM EDT, 09/30/2025 (MT Newswires) -- A hold would surprise markets more than economists when the Reserve Bank of India offers its latest decision on Wednesday, said Scotiabank.

Markets are roughly 80% priced for a cut, but the majority of economists lean toward a hold, noted the bank.

The RBI has the cover to cut, given that inflation remains low at close to 2% year over year, pointed out Scotiabank.

The Indian government has been applying some measures aimed at encouraging growth -- such as a GST reduction -- but United States tariffs are a downside risk to the economy, added the bank.

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