The RBI’s MPC kept the repo rate at 5.5% in August, signalling no cuts ahead despite earlier market hopes for further easing
Inflation is seen at 3.1% this year, but a rise to 4.9% in early FY 2026–27 leaves little scope for a rate cut
Falling vegetable prices have eased inflation, but volatile food costs could quickly reverse the trend
With GDP growth expected at 6.5% this year, robust demand supports the RBI’s decision to hold rates steady
US tariffs on Indian imports over Russian crude add global uncertainty, affecting growth and inflation outlook
Liquidity injections and CRR cuts have eased conditions, but the RBI must now manage expectations carefully