The MPC’s decision to keep rates unchanged reflects confidence in macro stability, aided by stronger growth estimates and inflation remaining close to target levels
Upgraded GDP projections for early 2026-27 signal resilience, supported by trade tailwinds and continued public capital expenditure despite global uncertainties
While near-term inflation forecasts have edged up marginally, core pressures remain subdued, with recent volatility largely driven by higher precious metal prices
Changes in GDP and CPI composition may alter projections, but they will not affect underlying activity, making immediate policy shifts by the MPC unlikely
Concerns over the government’s borrowing programme pushed bond yields higher, but the RBI has reiterated its commitment to smooth issuance and ample liquidity
Beyond rates, the RBI’s proposals on fraud compensation, MSME lending and financial inclusion signal a broader effort to strengthen trust and credit flow