RBI Monetary Policy Preview — Pause In The Rate Cut With A Neutral Stance Predicts Anand Rathi
A pause now would allow policymakers to assess the full impact of the monsoon on food prices, the passthrough of earlier easing on economic activity & the impact of disruptive trade policy of the US.
(Photo: Vijay Sartape/NDTV Profit)
India’s growth momentum in Q1 FY26 appears firmly on track, buoyed in part by the RBI’s earlyFY26 rate cut. While global trade jitters have lingered, the extended tariff pause has brought some respite. Against this uncertain backdrop, the domestic economy has kept up its pace, with high-frequency indicators such as the manufacturing PMI and E-Way bill collections pointing to resilient activity.
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.
Anand Rathi Report
With inflation well contained but underlying risks still bubbling, the Reserve Bank of India is expected to hold the repo rate steady at 5.50%, having already frontloaded easing through both a rate cut and a 100 bps CRR reduction earlier this year.
Surplus liquidity has prompted renewed VRRR operations, underlining the central bank’s nimble, data-driven approach.
A pause now would allow policymakers to assess the full impact of the monsoon on food prices, the passthrough of earlier easing on economic activity and the impact of disruptive trade policy of the US.
The policy stance, in all likelihood, will remain neutral with a dovish bias—entirely in keeping with the RBI’s annual report, which puts a premium on supporting growth as inflation ebbs and economic momentum gradually recovers.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
