Rahul Goswami, CIO & MD, India Fixed Income, Franklin Templeton.
“The RBI’s decision to keep policy rates unchanged reflects its view that current monetary conditions remain supportive of economic growth. Following a cumulative 125 basis points of rate cuts, the central bank has also undertaken several liquidity-enhancing measures to ensure adequate system liquidity and effective transmission of policy rates. With GDP growth expected to remain resilient at around 7% and CPI inflation projected to align with the 4% target during the first half of FY27, the RBI is carefully weighing these factors. Additionally, the forthcoming revision of the GDP and CPI base years from February 2026 introduces statistical uncertainty, prompting the central bank to assess how these dynamics evolve before taking its next policy action”
Vinay Pai, MD & Head of Fixed Income, Equirus Group
“The Reserve Bank of India, in its policy announcement today, kept the repo rate unchanged, in line with market expectations. In the days leading up to the policy, bond markets witnessed a rally driven by expectations of additional liquidity measures from the RBI, along with supportive movements in the foreign exchange market. The RBI has also dispensed with the requirement for certain NBFCs to obtain prior approval to open more than 1,000 branches. This step is expected to enhance ease of doing business and foster a more competitive environment among NBFCs, enabling them to expand their outreach more effectively.”