We broadly concur with the MPC's growth forecasts for FY2027, notwithstanding some differences in the quarterly projections, Nayar said.
The RBI is more likely to use temporary liquidity absorption tools than tighten its policy stance or rates ahead, while system liquidity should improve as government spending accelerates.
For Indian markets, the bigger issue over the next few months, analysts said, isn't the repo rate, but how much more geopolitical pressure the rupee can take before the central bank has to step in.
Any further policy tightening is likely to remain contingent on a sustained rise in energy prices or evidence of broader, demand-driven inflationary pressures.
The slight surprise element in the policy was the decision to raise the GDP growth rate projection for FY27 to 6.7 per cent from 6.6 per cent earlier
Among interest rate sensitives, Exide, Uno Minda, Bosch, Tata Motors CV, Ashok Leyland, Godrej Properties, DLF and Lodha Developers gained 3-5% in Wednesday's intra-day trade post RBI policy.
The RBI's Monetary Policy Committee kept the repo rate unchanged at 5.25 per cent and retained its neutral stance. Experts noted that the central bank struck a balanced tone
Developers said stable borrowing costs would support buyer confidence and project execution, though Anarock cautioned that the pause may not revive mass-market housing
RBI MPC August meeting: At its policy meeting, held between August 3 and August 5, the committee maintained its 'neutral' stance
The RBI retained its neutral monetary policy stance while revising its FY27 inflation forecast to 5 per cent and raising its economic growth projection to 6.7 per cent
RBI MPC meet: At its June monetary policy review, the RBI kept the repo rate unchanged at 5.25 per cent
All eyes on whether the policy tone turns less dovish
The central bank's six-member Monetary Policy Committee, headed by Governor Sanjay Malhotra, is expected to leave the repurchase rate unchanged at 5.25%
Inflationary pressures resurfaced after averaging a modest 2 per cent in 2025-26
The rate-setting body is likely to remain in wait-and-watch mode as uncertainties continue to cloud the macroeconomic outlook
The Reserve Bank of India (RBI) is expected to keep the benchmark repo rate unchanged in its August monetary policy review on elevated inflation risks and pending the closure of the FCNR(B) deposit scheme, a poll of 10 economists and treasury heads has revealed. Most respondents anticipate that the central bank will maintain its policy stance as 'Neutral' while adopting a hawkish tone amid rising inflation risks from geopolitical tensions, elevated crude oil prices and an uneven monsoon. Economists said the central bank will remain in a "wait-and-watch" mode as it assesses the evolving inflation outlook. "As of now, trimmed core inflation remains benign and suggests a status quo is the best policy option for the time being, with caution being expressed through the policy tone," said Aditi Nayar, chief economist at ICRA. In recent media outings, Governor Sanjay Malhotra has reiterated that inflation will be the central bank's foremost priority going ahead, pointing out that progress
The central bank held two variable rate repo auctions after banking system liquidity surplus dropped below Rs 1 trillion, while the 10-year bond yield rose 3 basis points
The country's largest private-sector lender increased lending benchmarks across tenors, with the sharpest rise in the two-year MCLR despite an unchanged policy rate
RBI's commentary on inflation 'opens the door for rate hikes in the next meeting' in August, according to Pranjul Bhandari, chief India economist at HSBC Holdings Plc
The decision to hold rates was unanimous. The MPC also retained the neutral stance on policy