Comment on RBI Monetary Policy – June 2026 reaction by By Naval Kagalwala, COO & Head of Products, Shriram Wealth Ltd
Below the Comment on RBI Monetary Policy – June 2026 reaction by By Naval Kagalwala, COO & Head of Products, Shriram Wealth Ltd
“The RBI MPC held the policy repo rate and its ‘neutral’ stance. The decision was unanimous. However, amid a continuing volatile global economic environment, the overall tone was cautious. The bond yields edged lower, with the RBI measures to boost foreign capital for GOI borrowing, along with tax benefits for FPIs announced. The inflation projection was raised to 5.1% (vs 4.6% in April policy) but was still seen within the RBI's comfort band - providing some respite to bond market investors, while also eliminating the need for an immediate rate hike. The GDP growth for FY27 was toned down by 30bps to 6.6% from the earlier 6.9% (April policy). The MPC approach of warranting a vigil on upcoming inflation prints and data dependent approach was maintained. Language on domestic growth was marked as being resilient, and FX reserves seen adequate, with confidence to withstand global shocks.”
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