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Below the Quote on RBI Monetary Policy by Archit Shah, Chief Investment Officer, Zurich Kotak General Insurance Company (India) Limited 

“The Monetary Policy Committee unanimously decided to keep the repo rate unchanged at 5.50%, maintaining a dovish pause to allow past easing to transmit. RBI upgraded FY26 growth forecast to 6.8% on resilient demand, while lowering inflation outlook to 2.6%, citing easing food prices and tax rationalization. This reflects a classic wait-for-transmission move. RBI is signaling that it believes the monetary easing already done needs time to fully work through. The upward growth revision gives room to pause, while the benign inflation projection justifies holding rates. But this stance is conditional upon any resurgence in global commodity prices, fiscal slippage, or exchange rate stress could force the RBI’s hand”.
 

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