Rising dissent & rains to test RBI's status quo on key rates

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.