The Reserve Bank of India on Wednesday kept the repo rate steady at 5.5% after three consecutive cuts, citing global tariff uncertainties. The FY26 growth forecast remains at 6.5%, while inflation projection is lowered to 3.1%.
SBI Research expects the RBI to cut the repo rate by 25 basis points in August, citing soft inflation, early festive demand, and global headwinds. It warns against delayed action that may miss the current policy window
By adopting an accommodative stance, the RBI's Monetary Policy Committee has signalled a shift in priorities from inflation containment to growth revival
"The RBI has already embarked on a rate cutting cycle and is likely to go in for another 25 basis points reduction in the April monetary policy committee meeting, taking the repo rate to 6 per cent," HSBC Research said