BENGALURU, Sept 27 Reuters The Reserve Bank of India RBI is expected to cut interest rates by a modest 50 bps over the next six months, according to a majority of economists in a Reuters poll who said it would likely wait until December to start rather than move in October.

Inflation held below the RBI39;s mediumterm target of 4.0 for a second month in August. While it is expected to rise a bit in coming months, it has held in the 26 comfort zone for nearly a year and was expected to stay there through mid2026.

Most economists said the RBI would not be led to follow up quickly after the U.S. Federal Reserve39;s 50 basispoint cut this month, thanks to a strong domestic economy and a stable currency.

Median forecasts for the repo rate have not changed in Reuters polls taken since April.

Over 80 of economists, 63 of 76, in a Sept. 1726 Reuters poll predicted the RBI would hold the repo rate at 6.50 at the conclusion of its Oct. 79 meeting. Twelve forecast a 25 basispoint cut, while one anticipated a drop to 6.15.

The RBI has held the repo rate steady since February 2023, focusing on maintaining a tight trading range for the rupee through direct intervention in the FX market.

The reason why the RBI will not be in a hurry, unlike the Fed who had to go for a cut, is because the Indian economy is still on a very strong wicket, said Suman Chowdhury, economist at Acuite Ratings.

With…food inflation showing signs of coming down and for the next few months likely to behave…