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Below the Quote on RBI MPC Meeting by Vaibhav Porwal, Co-Founder, Dezerv

"In today’s Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) announced a 25-basis-point reduction in the repo rate—from 6.25% to 6.00%. Additionally, the MPC changed its stance from neutral to accommodative, clearly signalling support for growth through potential future rate cuts.

This move is in line with our market expectations. It's important to note that this stance change does not directly imply increased liquidity; however, RBI has confirmed it will continue to manage liquidity as needed.
 
Key takeaways:
* Policy outlook: In the coming months, provided there are no significant economic shocks, we anticipate the MPC will either maintain current rates or implement additional rate cuts. We expect an additional 50–75 basis points of rate cuts in FY26, depending on global factors and tariff developments.

* Growth forecast: GDP growth for FY26 has been revised downwards to 6.5% from 6.7%, reflecting cautious investment and spending due to ongoing uncertainty. However, urban consumption shows signs of gradual improvement.

* Inflation outlook: CPI inflation for FY26 is now projected at 4.00%, slightly down from the previous forecast of 4.20%. Lower crude oil prices have positively contributed to this improved inflation outlook.

Additionally, the RBI announced several non-monetary measures aimed at strengthening the financing ecosystem—these include enabling securitisation of stressed assets, extending co-lending guidelines to all regulated entities, and issuing fresh regulations on gold loans and partial credit enhancement.

With falling interest rates, bond prices are likely to rise, benefiting short to medium-term bonds.
We anticipate further rate reductions in upcoming MPC meetings, and fixed-income investors should lock in currently elevated yields through medium-term bonds. Investing now enables you to secure these higher returns before they potentially decrease further."

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