The Reserve Bank of India will keep its key interest rate on hold at 5.50% until at least the end of this fiscal year after its big 50 basis-point cut on Friday to support slowing urban household consumption,

The lone economist who predicted the Reserve Bank of India’s out-sized interest rate cut on Friday expects another smaller reduction before the central bank hits a pause.

On Friday, the Reserve Bank of India's Monetary Policy Committee (MPC) cut the repo rate by 50 basis points (bps) to 5.5%, marking the third consecutive rate cut this year.