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Below Quote on RBI Monetary Policy Reactions by Prashant Pimple, Chief Investment Officer – Fixed Income, Baroda BNP Paribas Mutual Fund

"Amidst the geopolitical chaos, RBI in April-2026 monetary policy meeting decided to continue with a pause on repo rate and retained the neutral stance. The key reading in the policy was around MPC’s inflation and growth projections which reflects the recent shocks from elevated brent prices and spillovers from the West Asia war. Inflation is projected at 4.6% y/y for FY27. The future trajectory of inflation will mainly be guided by evolving geopolitical situation and the upcoming monsoon season. RBI’s language on domestic growth was concerned with recent impact of the war on domestic activity. Therefore, RBI has projected domestic growth at 6.9% for FY27 vs 7.6% in FY26. Importantly RBI continued to give comfort on the liquidity conditions in the economy and reiterated its proactive approach on liquidity management. "

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