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Despite some notable https://www.fanslucky.com contrarian opinions in this regard, a majority of the analysts and market participants believed that the MPC would keep the policy rate unchanged at 4 per cent in its meeting that concluded on August 6. After all, the effectiveness of another rate cut on top of the cumulative 115 basis point cut in the previous two meetings that were arranged off cycle, resulting in an aggregate rate reduction of 250 basis points since February 2019, in boosting economic activity would have been minimal. Moreover, it would be injudicious for the MPC to quickly expend its remaining rate cutting firepower in the present situation, when there are chances of further large shocks.

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