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
"We see RBI’s change in stance to ‘accommodative’ as an intent for a deeper rate cut cycle. This is in line with our view of another 75-100 bps of rate cuts in FY2026E, implying repo rate at 5-5.25% by end-FY2026E. The benign outlook on inflation (favorable monsoon, lower crude oil prices to offset INR depreciation) and downside risks to growth will provide room for this deeper rate cut cycle. The RBI’s focus remains on addressing growth concerns as inflation is expected to remain around the 4% handle. We also expect the RBI to keep liquidity conditions ample to ensure smooth monetary policy transmission."
Above views are of the author and not of the website kindly read disclaimer
