Comment on RBI Monetary Policy from Naval Kagalwala, Shriram Wealth
Below Comment RBI Monetary Policy reaction comment from Naval Kagalwala, Shriram Wealth
RBI Holds Steady, Maintains Cautious, Watchful Stance
“RBI MPC meeting outcome was largely along expected lines, with both rates and stance maintained given ongoing geopolitical uncertainty. FY27 CPI inflation is now seen at 4.6%, with risks tilted to the upside, and real GDP growth at 6.9% (7.6% in FY26) owing to elevated energy prices and supply shocks. The overall tone was cautious, with the committee on a wait and watch mode, while also remaining vigil on global developments. The governor indicated comfort around external front and reiterated to be proactive and pre-emptive in terms of liquidity management. G-sec yields were only mildly higher following the outcome of policy statement, although yields have fallen 10-20bps since yesterday’s Ceasefire (temporary) announcement in the West Asia Conflict. We continue to remain constructive on the near end of the curve given RBI's assurance of maintaining adequate system liquidity and elevated yields.”
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