RBI puts rate cuts on ice

What happened: RBI Governor Sanjay Malhotra said inflation is generalising and voted to change the MPC stance to calibrated tightening from neutral, signalling rate cuts are off the table near term. Key numbers: 37% of consumer basket commodities had inflation above 4% in August, up from 20% in March. Why it matters: External members Kumar and Ram Singh opposed the stance change, with Singh saying it may signal an extended rate hike cycle. Bhattacharya cited real rates inconsistent with price stability. Bhattacharyya sought setting aside the cautiousness bias and hiking rates.

RBI pausing rate cuts signals tighter policy stance, a key market catalyst.

RBI pausing rate cuts signals tighter policy stance, a key market catalyst. — impact context not separately stored; see What changed.