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Below the Quote on the RBI Monetary Policy by Mr. Prashant Pimple, Chief Investment Officer - Fixed Income Baroda BNP Paribas Mutual Fund

The RBI’s decision to keep the repo rate unchanged at 5.5% signals a cautious and data-dependent stance amidst global and domestic uncertainties. In our view, this policy is more about interpreting the broader message than focusing solely on the projections. The RBI appears reluctant to exhaust its rate-cutting options prematurely, especially without seeing the full impact of the recent GST cuts on festive season demand. While the changes in projections were broadly in line with expectations, the central bank continues to face a delicate balancing act. The real clarity on the scope for further easing is likely to emerge in the December-25 and February-26 policy meetings, once the effects of US tariffs, global economic conditions, and domestic fiscal measures become more evident.

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