The Monetary Policy Committee of the RBI convened this week, emphasizing the favorable effects of recent monsoon rains on inflation. Governor Shaktikanta Das insists on focusing on reducing inflation to 4%. External members JR Varma and Ashima Goyal argued for interest rate cuts, citing high real rates. The central bank's growth forecast stands at 7.2%. Despite this, pressures for rate cuts grow as policymakers face challenges if they maintain the current rates, making the final decision crucial.
