RBI flags widening inflation risks, 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: Members Kumar and Ram Singh opposed the change, with Singh saying it may signal an extended rate hike cycle. Bhattacharya cited the need to maintain a gap between India and G7 rates to attract debt flows.

RBI flags widening inflation risks, putting rate cuts on hold.

RBI flags widening inflation risks, putting rate cuts on hold. — impact context not separately stored; see What changed.