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Below the Quote on RBI MPC policy Views by Mr. Killol Pandya, Head of Fixed Income, JM Financial Asset Management Ltd 

Status quo policy: RBI retains repo rate, stance and growth estimates while lowering inflation forecast.

Takeaways:

* Reserve Bank of India (RBI) kept Repo rate unchanged at 5.50%, Standing Deposit Facility (SDF) at 5.25% and Marginal Standing Facility (MSF) at 5.75%.

* The Monetary Policy Committee (MPC) retained its stance to ‘Neutral’

* RBI kept its Gross Domestic Production (GDP) projection for FY 25-26 unchanged at 6.50%.  

* However, RBI continued to lower its FY’25-26 Consumer Price Index (CPI) inflation forecast to 3.10%    (vs its earlier forecast in June 2025 policy at 3.70%)

* RBI expressed its view of moderating growth and softening in inflation in the coming months, which bodes well for bond markets. However, it also reiterated the need for vigilance at this juncture, given the risks posed by the rising uncertainties regarding global macro-economic conditions and its potential impact on domestic conditions.

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