The Monetary Policy Committee (MPC) will be concluding their meeting on October 04, Friday post which the highlights of the monetary policy stance will be announced. Broadly, the following key expectations can be put down here.
Considering the weakness in the IIP and the core sector over the last two months as well as the weak GDP number at 5%, the rate cut appears to be on the cards.

However, the government has already announced an interim fiscal boost via corporate tax rate cuts and that is likely to limit the rate cut in this policy.

Unlike in the August policy, when the rates were cut by 35 bps, this time around, the rate cut is likely to be pegged at around 25 bps only. That would take the repo rates to a new level of 5.15%.

The MPC is expected to continue with its accommodative policy considering the weakness in growth. However, the MPC may underline that future rate action would be purely data-driven.

In the last few months, the markets have seen a comfortable liquidity situation. Hence the OMO action may be tweaked accordingly.