Monetary Policy Review: RBI Governor Signals Pause; Track & Monitor Previous Rate Cuts— Read DRChoksey Report

The Monetary Policy Committee voted to maintain the policy repo rate at 5.5%, keeping it unchanged for the current review. Consequently, the Standing Deposit Facility rate under the Liquidity Adjustment Facility stands steady at 5.25%, while both the Marginal Standing Facility rate and the Bank Rate remain aligned at 5.75%. The decision underscores a calibrated approach to policy normalization amid evolving global and domestic macroeconomic dynamics..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Deven Choksey Report.The Reserve Bank of India Monetary Policy Committee maintained the policy repo rate at 5.5% and reiterated its neutral stance, as most of the domestic high frequency indicators suggest that economic activity continued to remain resilient, despite global tariff-related uncertainties.The MPC upgraded the growth outlook for the current fiscal, projecting real GDP growth at 6.8% (+30bps vs last projection) for FY26E, supported by benign inflation cycle, favorable financial environment and consumer demand amid GST rationalization drive by the GST council in its 56th meeting held on September 3, 2025, offset by expected weakness in exports led by prolonged global trade pressures.Although, the repo rate has been cut by 100bps cumulatively, it has exerted marginal pressure on bank’s Net Interest Margins, led by judicious and effective cost of funding for major Indian banks. The impact has been selective, with impact on ICICI bank and Union bank on the lower side, while the impact has been higher on SBI and other PSU banks of the higher side. The expected impact is to be higher for banks with a higher share of floating-rate assets.Despite MPC continued with neutral stance and kept repo rates unchanged, consumer confidence remains buoyant, driven by festive demand, recent GST cuts on majority of the consumption basket and expected improvement in credit environment, expected to boost demand for low ticket items such as consumer durables and high-ticket items including autos and real estate..We remain positive selectively on banks including ICICI Bank and HDFC Bank on private side, while SBI on the PSU side being our top picks, led by there stronger balance sheet, robust asset quality, and superior return ratios. We also remain positive on selective NBFC’s such as Bajaj Finance, led by healthy credit momentum and franchise strength..Click on the attachment to read the full report:.IT Q2 Results Preview — Tech Mahindra, Coforge Remains Motilal Oswal's Top Pick Ahead Of Q2 Earnings.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Monetary Policy Review: RBI Governor Signals Pause; Track & Monitor Previous Rate Cuts— Read DRChoksey Report

The RBI MPC maintained the policy repo rate at 5.5% and reiterated its neutral stance.

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