Quote on MPC policy by Mr. Killol Pandya, Head of Fixed Income, JM Financial Asset Management Ltd
Below the Quote on MPC policy by Mr. Killol Pandya, Head of Fixed Income, JM Financial Asset Management Ltd
RBI Key Takeaways:
* Reserve Bank of India (RBI) kept Repo rate unchanged at 5.50%, Standing Deposit Facility (SDF) at 5.25% and Marginal Standing Facility (MSF) at 5.75%.
* The Monetary Policy Committee (MPC) retained its stance to ‘Neutral’
* RBI hiked its Gross Domestic Production (GDP) projection for FY 25-26 to 6.80% (Vs previous August 2025 Policy projection of 6.50%).
* RBI also lowered its FY 25-26 Consumer Price Index (CPI) inflation forecast to 2.60% (Vs its earlier forecast in its August 2025 policy of 3.10%)
* RBI expressed its view of resilient growth in the backdrop of softening in inflation in the coming months, which bodes well for bond markets. However, it also reiterated the need for vigilance at this juncture, given the risks posed by the rising uncertainties regarding global macro-economic conditions and its potential impact on domestic conditions.
* In absence of clarity about future rate actions, the policy was seen as mildly disappointing by market participants, some of whom were expecting a repo rate cut in this policy.
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