Why does RBI’s position on rate cuts remain difficult despite rising possibility of Fed rate cuts in September?

The US Fed, in its Jackson Hole speech, signaled a likely rate cut beginning in September, prompting the US 10-year yield to soften and the dollar index to fall to a seven-month low. Despite this, Indian 10-year G-sec yields have remained steady. This is due to the RBI’s limited ability to adjust its monetary stance, influenced by India’s unique supply-driven inflation dynamics.