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Below the Perspective  on RBI Monetary Policy Committee Announcement by Mr. Piyush Baranwal, Sr. Fund Manager (Fixed Income), WhiteOak Capital Asset Management Ltd

‘In its MPC meeting concluded today, RBI kept its policy rates on hold, in line with its steadfast focus on durably aligning CPI with the 4% target. Pertinent to note that it wasn’t unduly perturbed by sharp moderation in Q2 GDP growth, which it saw as transitory. It instead chose to wait for more confirmation of CPI cooling off, especially given two elevated prints since the last MPC meet. RBI however cut CRR by 50 bps to alleviate liquidity tightness caused by aggressive FX intervention in the recent weeks. Going forward, CPI is expected to moderate over the coming months and is projected to reach around 4% by Q2FY26, while GDP projections have been revised downwards by RBI. Given this backdrop, we continue to expect a shallow rate cut cycle ahead beginning in February.’

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