Quote on RBI MPC by Suvodeep Rakshit, Chief Economist, Kotak Institutional Equities
Below the Quote on RBI MPC by Suvodeep Rakshit, Chief Economist, Kotak Institutional Equities
"The RBI kept repo rate unchanged in the August policy as it focused on inflation starting to increase steadily from 4QFY26 while acknowledging a much benign inflation trajectory in its estimates for the remainder of CY2025. We expect the RBI to keep liquidity adequately in surplus to ensure continued transmission of the rate cut cycle. We believe that the RBI will likely remain on a long pause as it focuses on the FY2027 inflation trajectory and growth impulses remaining steady. The bar for a dovish shift will be higher from here on and dependant on substantial downside to growth prospects".
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