Yes Bank expects the RBI to maintain a wait-and-watch approach on interest rates despite rising inflation, as supply-side shocks have not triggered broad second-round effects. July WPI inflation eased slightly to 9.8 per cent, while manufacturing input pressures remain elevated
The RBI opted for a status quo despite the US Federal Reserve's decision to lower benchmark rates by 50 basis points last month. Additionally, several central banks in developed nations have also reduced their interest rates.
