After unanimously voting to increase the policy repo rate by 25 basis points (bps) to 5.50%, the Reserve Bank of India ’s (RBI) Monetary Policy Committee (MPC) has signalled that rate cuts are off the table in the near-term as inflationary pressures mount. The pace and extent of further tightening would depend on the evolving growth-inflation outlook, said the minutes of the MPC meeting held on October 6.

The decision comes amid rising crude oil prices, weather-related disruptions to food supplies, a deficient monsoon and rupee depreciation, with the RBI projecting retail inflation at 5.2% for 2026-27, up from its earlier forecast of 5%.…