New Delhi: The wait-and-watch policy of the RBI on the monetary policy is prudent, a report said on Tuesday, adding that the bank's dovish tone suggests further easing, but a December rate cut is not ‘a done deal’.

While any further rate cut by the RBI will depend on growth conditions, the depth of further rate cuts may be extremely limited and hence the RBI may also want to retain the powder dry for now, the report from Yes Bank said. The report maintained that the tone of the policy remained dovish, which signalled further easing, possibly as early as December.

Despite the current inflation trending at less than the lower bound of the RBI tolerance level and expectations of a 2.6 per cent inflation for FY26, the RBI did not alter its monetary policy rate and stance at the last meeting in October.