Reserve Bank of India (RBI) governor Shaktikanta Das on Wednesday tempered down expectations of a rate cut in December in the wake of a shift in the central bank’s monetary policy stance.

“A change in stance doesn’t mean there will be a rate cut in the very next meeting,’’ Das said at a conference here.

Das pointed out the October inflation will be "much higher’’ than the September print. The headline inflation hit a 9-month high of 5.49 per cent in September which was above the RBI’s target of 4 per cent.

At its meeting last month, the monetary policy committee (MPC) of the RBI shifted its stance to neutral from the withdrawal of accommodation which opened up the possibility of a rate cut. Many were betting interest rates to be lowered either in December 2024 or in February 2025.

Das reiterated his previous position that that any relaxation in rates would happen only if inflation falls to 4 per cent on a durable basis.

The RBI has already forecast more than 4 per cent inflation in the third quarter at 4.8 per cent, up from 4.1 per cent in the second quarter.

Amid concerns about growth, the RBI governor admitted the incoming data was “mixed”, though positive factors outweigh the negative ones.

He further pointed out the underlying economic activity by and large remains strong.

Official data showed growth slowing to a 15-quarter low of 6.7 per cent in the first quarter of 2024-25, leading to some economists questioning RBI’s estimate of 7.2 per cent growth for the fiscal.

Das said the RBI tracks over 70 high-speed indicators to arrive at its estimates and described both the positive factors pushing up the number and the negative ones pulling it down.

The index of industrial production (IIP) data and moderation in urban demand are the negative factors. The positive side includes the strong growth in GST e-way bills, toll collections and air passenger traffic.

“I would not rush to declare that the economy is slowing down.”

On the issue of regulatory and supervisory actions against four non-banks recently, Das reiterated that the RBI has acted against a very small number if one were to compare the overall number of NBFCs (non-banking financial companies), which is 9,400.

Asserting that the central bank actions are “calibrated, selective and measured”, Das said such decisions are not abrupt.