IGI Logo

Below the Quote on RBI Monetary policy by Lakshmanan V, Group President & Head - Treasury (Treasurer), Federal Bank

RBI MPC unanimously decided to keep the rates unchanged at 5.25% and stance neutral .

CPI for FY 27 is revised lower to 5% from 5.1%, primarily owing to a much softer inflation recorded in Q1FY27. Likewise the Growth performance in Q1FY27 has led to an upward revision in annual Growth projections by 10 bps from 6.6% to 6.7%. The policy with a neutral stance is clearly guiding a wait and watch mode on future rate direction, based on how the growth-inflation dynamics play out in the coming periods, The risks to watch out amongst others will clearly  be south-west monsoons, El Nino, geopolitical risks and global trade policy.

Above views are of the author and not of the website kindly read disclaimer