Low Inflation, Stable Rates: Why RBI May Pause Further Action

With inflation under control and CPI readings staying benign, the outlook for interest rates appears largely stable. According to market experts, while inflation may edge up from current low levels, it is unlikely to breach the comfort band set by the Reserve Bank of India. Most rate cuts are believed to be front-loaded, leaving limited scope for further easing. This suggests that interest rates could remain at current levels through the medium term, supporting economic stability without triggering fears of a deflationary spiral. While market forces may eventually push rates higher over the long run, the near-to-medium outlook points to a prolonged pause by the RBI, offering predictability for borrowers, investors, and businesses planning for the year ahead.