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Informist, Wednesday, Aug. 6, 2025

MUMBAI – Following is a compilation of first views of economists and market experts on the Reserve Bank of India's third bi-monthly monetary policy statement for 2025-26 (Apr-Mar) detailed on Wednesday:

BANKERS

PRALAY MONDAL, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, CSB BANK

RBI monetary policy decision to hold the rates comes as per expectation. It is prudent to assess the impact of rate cuts and liquidity injection on the wider economy before moving further. We expect that the transmission will be complete in the next couple of quarters and the global uncertainties will also abate. Depending on the incoming data, RBI will be better placed to take a decision in the next policy.  

(Rati Chaphekar)

SARVJIT SINGH SAMRA, MANAGING DIRECTOR AND CHEIF EXECUTIVE OFFICER, CAPITAL SMALL FINANCE BANK

We appreciate the RBI's consistent and calibrated approach to maintain the repo rate at 5.50% and provide systemic liquidity to support interest rate (cut) transmission. Given the significant 100 bps (basis points) reduction earlier this year and (FY26) inflation now projected at a comfortable 3.1%, this pause reflects a measured and forward-looking approach. From a macroeconomic lens, it signals confidence in the growth trajectory, with GDP expected to grow at 6.5% despite global headwinds, including recent US tariff actions. With consistent and proactive policy action, the RBI is instilling confidence in the medium- to long-term economic outlook.

From an SFB (small finance bank) standpoint, this policy continuity provides a stable environment to support credit growth, especially across underserved and priority sectors. With adequate liquidity in the system and rates now more conducive, we anticipate stronger credit demand, particularly in MSMEs (micro, small, and medium enterprises), affordable housing, and rural lending.

This stance reinforces the RBI's commitment to balancing growth with financial stability, and we remain optimistic about the evolving lending landscape in the months ahead.  

(Ketaki Patil)

SALEE S. NAIR, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, TAMILNAD MERCANTILE BANK

The RBI's decision to maintain the repo rate at 5.5% with a neutral stance is a prudent move that reflects the need to strike a fine balance between nurturing growth and anchoring inflation expectations. With CPI inflation at a 77-month low and signs of robust rural consumption, this is an opportune moment for credit institutions like ours to deepen their outreach and serve as true enablers of growth. At Tamilnad Mercantile Bank, we see this policy as a green signal to enhance our credit delivery--especially to sectors like agriculture, micro-enterprises, and retail borrowers--where the multiplier effect of lending is most immediate.

We welcome the RBI's continued focus on financial inclusion through re-KYC, or know your customer, drives and simplified claim processes, which resonate with our ethos of customer-centricity and trust. As a bank with a strong presence in Tamil Nadu and other semi-urban and rural belts, we are well positioned to translate these policy cues into grassroots impact. 

(Shravani Chandiwade)

BINOD KUMAR, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, INDIAN BANK

As RBI had frontloaded rate cuts, it was expected to maintain status quo. It is a welcome move. However, it leaves room to reconsider in coming months as CPI is benign and a push for growth may be required. At Indian Bank, we have already passed on the benefits of previous rate cuts and expect further normalisation in MCLR (marginal cost of funds-based lending rate) as cost of funds continue the southward journey. 

(Muskan Lodhi)

AJAY KUMAR SRIVASTAVA, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, INDIAN OVERSEAS BANK

The RBI's decision to maintain the repo rate at 5.5% and continuation of maintaining a neutral stance is a well calibrated approach in its aim to control inflation and growth support. With core inflation remaining steady at 4% mark, projections of CPI inflation averaging 3.1% for FY26 and GDP growth holding steady at 6.5% reaffirms the resilience of the Indian economy. We also welcome RBI's move on liquidity management and its aim to remain nimble which is important for ensuring credit availability while maintaining economic stability. RBI's decision to enhance retail access to Treasury Bills via SIPs (systematic investment plans) and the standardisation of bank locker and account claim settlements, are initiatives that are expected to further deepen financial inclusion and boost investor confidence. With completion of a decade in Jan Dhan scheme, banks are also aggressively undertaking camps initiatives to expand the number of accounts. At Indian Overseas Bank, we see this policy stance as growth and stability oriented, and we are committed to supporting the credit needs of individuals and businesses alike.

(Shravani Chandiwade)

V.R.C. REDDY, HEAD OF TREASURY, KARUR VYSYA BANK

Reserve Bank of India kept the repo rate unchanged and maintained its neutral stance in today's policy announcement, broadly aligning with the market's mixed expectations. While a cumulative 100 bps rate cut is still working its way through the system, transmitting at a relatively swift pace, global uncertainties, including continued US tariff actions and recent rupee depreciation, have led the RBI to adopt a cautious approach.

Persistent core inflation and a projected CPI trajectory close to 5% from the beginning of the next fiscal are also tempering the space for near-term rate cuts. However, expectations of a dovish tilt by the US Federal Reserve amid soft labour market data and concern over domestic growth, particularly in light of higher US tariffs, continue to keep the door open for a rate cut in the October policy.

While today's outcome may seem moderately hawkish, the underlying tone suggests that the RBI is preserving policy flexibility. With a neutral stance and comfortable system liquidity, the central bank remains well-positioned to ease policy further if evolving global or domestic conditions necessitate it. 

(Ketaki Patil)

ECONOMISTS

DHIRAJ NIM AND SANJAY MATHUR, ECONOMISTS, ANZ BANK

The monetary policy committee kept the policy repo rate unchanged at 5.50%, contrary to our expectations. The decision was based on inflation above 4% for one year ahead and confidence in growth of 6.5% for fiscal year ending March 2026, according to projections of the Reserve Bank of India. Additionally, the RBI opted to wait and assess the progress of the transmission of rate cuts delivered so far.

The RBI lowered its FY26 CPI inflation forecasts materially, citing base effects and volatile food prices as the primary reasons. We think inflation could undershoot the RBI's revised projections but is unlikely to drive further easing. The burden of proof will be on growth.

We expect a challenging external environment, high US tariffs, and weakening domestic activity indicators will result in growth below the forecast, testing the RBI's confidence. Incoming activity data will be important to monitor. We are retaining a 25-basis-point rate cut in our forecast trajectory for now, pushing it to October.  

(Ketaki Patil)

MADAN SABNAVIS, CHIEF ECONOMIST, BANK OF BARODA

The credit policy was more or less on the expected lines with a status quo on rates and a continuation of the stance being neutral. While underlining the strength of the economy, which is to grow by 6.5%, the policy has flagged the uncertainty on the trade front. But the overall outlook is sanguine. On inflation, the forecast has been brought down significantly to 3.1%. But it has been rightly emphasised that this is mainly due to the base effects and the fact that vegetable prices have come down.

Two issues have been reiterated through the discourse. The first is that inflation in Q4 will rise to 4.4% and stay elevated at 4.9% in the first quarter of FY27. This is because of the base effects weakening. The second is that core inflation which is what is really affected by policy remains elevated above 4%. Putting this together, it does look like that this status quo can be persevered with for some more time unless there is any dramatic change in the conditions outlined in the policy. There can, hence, be at most one more rate cut which will be data dependent. On the liquidity front, the governor has cleared the air by revealing that the present liquidity framework of targeting the WACR (weighted average call rate) will continue as it is appropriate. This provides certainty to the market. 

(Janwee Prajapati)

TERESA JOHN, DEPUTY HEAD OF RESEARCH & ECONOMIST, NIRMAL BANG INSTITUTIONAL EQUITIES

In a unanimous decision, the RBI's MPC kept rates on hold largely in line with consensus expectations and against our expectation of a 25 bps rate cut as it waits for the transmission of past policy actions. The decision came despite a substantial cut in the CPI estimate to 3.1% citing higher inflation from 4QFY26 onwards along with core inflation expected to be around 4%.

The governor noted that domestic growth is holding up even though some high frequency indicators showed mixed signals in May and June. GDP growth has been retained at 6.5% for FY26 with Q1 at 6.5%, Q2 at 6.7%, Q3 at 6.6% and Q4 at 6.3% (all unchanged) and 1QFY27 at 6.6%. 

CPI inflation has been revised down to 3.1% from 3.7% in FY26 with Q2 at 2.1% (3.40% earlier); Q3 at 3.1% (earlier 3.9%) and Q4 at 4.4% (unchanged) and 1QFY27 at 4.9%. Core inflation is expected to be moderately above 4% in FY26.

We continue to see scope for rate cuts of at least 25 bps and up to 50 bps with continued downside risks to growth and inflation. Although the governor indicated that the RBI is looking beyond bank credit growth, the overall flow of credit including non-bank sources also remains relatively muted." 

(Rati Chaphekar)

SUVODEEP RAKSHIT, CHIEF ECONOMIST, KOTAK INSTITUTIONAL EQUITIES

The RBI kept repo rate unchanged in the August policy as it focused on inflation starting to increase steadily from 4QFY26 while acknowledging a much benign inflation trajectory in its estimates for the remainder of CY2025. We expect the RBI to keep liquidity adequately in surplus to ensure continued transmission of the rate cut cycle. We believe that the RBI will likely remain on a long pause as it focuses on the FY27 inflation trajectory and growth impulses remaining steady. The bar for a dovish shift will be higher from here on and dependant on substantial downside to growth prospects. 

(Janwee Prajapati)

ARSH MOGRE, ECONOMIST, PRABHUDAS LILADHAR CAPITAL

RBI's decision to hold the repo rate at 5.50% was not merely an exercise in prudence but it was a calibrated pause at the intersection of global fragility and domestic resilience. While headline inflation remains benign and June's front-loaded 50 bps cut still transmits through the system, the MPC appears acutely aware that downside risks to growth from tariff spillovers are not yet fully priced in. Maintaining a 'neutral' stance signals optionality rather than indecision as the central bank is keeping policy nimble in case trade shocks escalate or if financial conditions tighten globally. Any fresh easing will now hinge not just on data but on the balance of risks between global trade retrenchment, domestic demand softening and the rupee's trajectory. In this context, today's decision preserves both credibility and flexibility while acknowledging that we are in an uncertain world where macro policy must avoid both premature celebration and pre-emptive exhaustion.

(Janwee Prajapati)

SHILAN SHAH, DEPUTY CHIEF EMERGING MARKETS ECONOMISTS, CAPITAL ECONOMICS

The RBI's decision to keep the repo rate on hold at 5.50% while maintaining its "neutral" policy stance reinforces our non-consensus view that the easing cycle is at an end. The rupee has strengthened a touch and the 10-year yield is up slightly since the announcement, suggesting that some market participants were positioned for a cut. 

In the event, RBI Governor Sanjay Malhotra sounded relatively sanguine about the economic outlook, noting that "domestic growth remains resilient". Malhotra made only a passing mention of the uncertainties from "tariff announcements and trade negotiations", suggesting either that the MPC is not especially worried about the impact on GDP from Trump's 25% tariff on India (though Trump has indicated this will rise today due to India's purchases of Russian oil) or that it feels the tariff rate will eventually drop.

On inflation, the governor noted the sharper-than-expected fall in the headline rate in June but focussed more on the likelihood of it rising back towards the RBI's 4% target over the coming months as "unfavourable base effects and demand side factors from policy actions come into play". This is a view we share.

In all, there's little in Wednesday's policy announcement to change our view that the easing cycle has come to an end. Prior to today, a majority of analysts had been expecting one more 25 bps cut to the repo before the end of the year. 

(Shubham Rana)

RAJANI SINHA, CHIEF ECONOMIST, CAREEDGE RATINGS

RBI's decision to leave the rates unchanged was in line with our expectations. While inflation has fallen sharply in the last few months, the Central Bank has reiterated that they would be looking at the inflation estimate for the quarters ahead. We project CPI inflation to rise above 4% in Q4 FY26 and average above 4.5% in FY27, given the low base of this year. This implies that next year we are looking at a real rate of interest in the range of 1-1.5% and it can even go lower. This limits the scope of any further rate cut in this cycle. Even while highlighting the concerns around the external sector, the Central Bank has chosen to keep the GDP growth projection for FY26 unchanged at 6.5%, marginally higher than our projection of 6.4%. While the high tariff imposed by the US poses downside risks, we have kept our growth forecast unchanged, given that the US trade policy is still very uncertain. Moreover, there are factors like a healthy monsoon, lower inflation, and lower income tax burden that would be supportive of growth this year. 

(Rati Chaphekar)

UPASNA BHARDWAJ, CHIEF ECONOMIST, KOTAK MAHINDRA BANK

The MPC's decision to keep rates unchanged comes in the wake of global uncertainties, even as inflation remains benign and downside risks to growth persist. With inflation likely to trend higher post the near term favourable trends, the bar for rate cuts ahead is set very high. We can see some room for the last leg of easing only if growth momentum slows significantly.

(Rati Chaphekar)

MADHAVI ARORA, CHIEF ECONOMIST, EMKAY GLOBAL

Despite sharply lowering its inflation forecast to 3.1% from 3.7% earlier, the RBI's decision to keep rates steady emanates from their focus on one-year-ahead expected inflation that's looking comfortably above 4%, while growth in their view has held up well, despite global uncertainty. However, focusing on one-year-ahead expected inflation appears increasingly misplaced in an evolving world – particularly as the global landscape continues to shift toward a disinflationary bias in Asia. We think, going ahead, downside risks to growth would be increasingly evident with new global resets and could still open up space for easing in remainder of the year, even though the Governor seems to have raised the bar higher for further easing. 

(Shravani Chandiwade)

FUND MANAGERS

VIKAS GARG, HEAD – FIXED INCOME, INVESCO MUTUAL FUND

A Hawkish Pause! The MPC has held the policy rate at 5.5% after cutting it by a cumulative 100 basis points over the previous three meetings while maintaining a neutral stance. The FY26 headline inflation projection has been moderated by 60 bps to 3.1% on the back of benign food prices; however, 1QFY27 inflation is projected at 4.9% due to an unfavourable base effect.

Growth projections remain healthy at 6.5% for FY26, despite global tariff-related uncertainties. Forward-looking growth-inflation dynamics set a high bar for any future rate cuts. A small window for a possible final rate cut may open in the October or December policy meetings, but only if economic growth surprises meaningfully on the downside. Comforting commentary on adequate banking liquidity provides some relief. Currently elevated market yields, combined with low running inflation, offer a favourable risk-reward profile for investors. 

(Janwee Prajapati)

MARZBAN IRANI, CHIEF INVESTMENT OFFICER-FIXED INCOME, LIC MUTUAL FUND ASSET MANAGEMENT

Reserve Bank of India Monetary Policy Committee kept the repo rate unchanged at 5.50% and continued with the neutral policy stance. This was in line with our expectations as the governor had frontloaded cuts during the last policy. He had even announced liquidity measures in advance. Hence, no immediate action was required, given the global turmoil and the outlook on rupee inflation numbers have been revised downwards, whereas growth projections were kept unchanged. Going ahead, any action globally on rates and sharp slowdown in domestic growth might prompt RBI to take further action. 

(Janwee Prajapati)

UMESH KUMAR MEHTA, CHIEF INVESTMENT OFFICER, SAMCO MUTUAL FUND

Keeping the repo rate unchanged is the most prudent policy action taken by the MPC. Given that the Indian rupee is weakening and narrowing of the global interest rate differentials, the scope for rate reduction was slim. In the interest of stability of the currency given the volatile trade conditions, status quo on interest rate is the best that the monetary authority can do. 

(Ketaki Patil)

KAUSTUBH GUPTA, CO-HEAD FIXED INCOME, ADITYA BIRLA SUN LIFE AMC

The RBI's status quo policy is on expected lines. Uncertainty emanating from US tariffs and its impact on growth (both domestic and global) and trade/financial flows warrants close vigil on assessing the potential impact on overall macroeconomic conditions. We believe that with inflation remaining below the target space, further rate easing will depend on evolving growth conditions.

(Muskan Lodhi)

ABHISHEK BISEN, HEAD – FIXED INCOME, KOTAK MAHINDRA AMC

Despite the downward revision in average inflation projections to 3.10% (from 3.70%) for FY26, the RBI opted to maintain a "wait and watch" approach, keeping policy rates unchanged and (maintaining) "neutral" stance with unanimous vote by all members — in line with expectations of majority market players. The commentary was neutral to hawkish with GDP growth maintained at 6.50% for FY26, inflation projection of 4.40% for Q4FY26 (fourth quarter of FY26), and 4.90% for Q1FY27 (first quarter of FY27). With this commentary and inflation forecast, the bar of any future rate cut is high, unless growth slows down meaningfully due to factors such as tariff related uncertainty. G-sec yields have hardened by 4~5 basis points, and in the near term, the 10-year benchmark is expected to trade within the 6.30%~6.45% range. 

(Ketaki Patil)

OTHERS

POONAM TANDON, CHIEF INVESTMENT OFFICER, INDIAFIRST LIFE INSURANCE

May not see rate cuts unless data allows otherwise, especially weak growth numbers which is when RBI could move. Otherwise it would be status quo.

ON CENTRAL GOVERNMENT BONDS: Yields on government bonds will be in a range, maybe slightly on the higher side by 10 to 15 basis points. There could be steepness in the yield curve especially after Wednesday's policy and neutral stance. The spread is quite wide. Don't see it widening further on 10x30 (10-year benchmark gilt and the 30-year gilt). 

(Aaryan Khanna)

VINAY PAI, HEAD OF FIXED INCOME, EQUIRUS CAPITAL

After front-loading 50 basis point (rate cut) in June policy, the RBI held the rate at 5.50%, with focus on the monetary policy transmission. There has been reasonable progress with 39-basis point reduction in the overall lending rates on the outstanding loans and 71 bps on fresh loans. The key policy announcement was the projection of a strong decline in FY26 inflation to 3.1% (from 3.7%), led by Q2 and Q3 while a return to above 4% inflation by Q4 and further to 4.9% by Q1FY27 has kept the RBI from further accommodation.

The RBI will continue to provide ample liquidity to ensure banks transmit rates faster and also enable the corporate bonds issuances pickup and provide impetus on growth. The GDP forecast at 6.5% is maintained for FY26. The other headwind stems from external risk associated with the global uncertainty due to tariff stands high impacting exports and putting pressure on the currency. We therefore, expect the markets likely to be range bound with an upward sloping yield curve. Further rates cuts will depend on global factors and changes in growth outlook. For now, a closure on tariff negotiations will be the key to calm the currency markets and stem outflows, especially in the debt segment. 

(Rizwan Ali)

HITESH JAIN, STRATEGIST, INSTITUTIONAL EQUITIES RESEARCH, YES SECURITIES (INDIA)

In line with our expectations, the Reserve Bank of India (RBI) unanimously kept the policy rate unchanged at 5.50% while maintaining a neutral stance. The governor's remarks, however, did not reflect dovish undertones, with the FY26 real GDP growth forecast retained at 6.5%. Having frontloaded policy action in June, the RBI now appears inclined to assess the transmission of earlier measures to credit markets and the broader economy before introducing further changes. Bond markets interpreted the policy as mildly hawkish, with 10-year G-Sec yields rising. Going forward, the RBI will likely assess evolving external trade dynamics (read: Trump's tariffs on India) and the actual GDP print in the first quarter of 2025-26 (Apr-Mar).

With Q1 FY26 GDP data due later this month, we anticipate that the growth reading will undershoot the RBI's estimate of 6.5% by 20–30 basis points, given that several high-frequency indicators show only patchy signs of revival. The governor acknowledged that although rural demand remains resilient, urban consumption--particularly discretionary spending--remains subdued. Government capital expenditure continues to underpin growth, but private investment is still lagging. Industrial output has been weak in recent months and uneven across sectors. We also hold reservations about the RBI's FY26 real GDP growth forecast of 6.5%.

With FY26 CPI forecasts being downgraded to 3.1% from the earlier 3.7%, the inflation outlook for FY26 appears more benign. However, CPI is expected to rise to 4.4% in Q4 FY26 and 4.9% in Q1 FY27, as base effects turn less favourable. It is important to recognise that the RBI's policy decisions are inherently forward-looking. Although current real interest rates are elevated--around 240 basis points--seemingly providing room for further easing, more than one rate cut in the remainder of FY26 would substantially narrow real rates for FY27, potentially reducing them to around 50 basis points, which appears less tenable.

The central bank is likely to deliver a calibrated 25 bps rate cut in the upcoming October 2025 policy meeting, influenced by the uneven economic recovery and trade tensions. However, if growth significantly undershoots the RBI's FY26 GDP estimate, the probability of two additional rate cuts increases meaningfully. Additionally, any easing by the Fed would provide further headroom for the RBI to act without significantly destabilising capital flows.  

(Rizwan Ali)

PARAS JASRAI, ASSOCIATE DIRECTOR, INDIA RATINGS AND RESEARCH

The outcome of the Reserve Bank of India's August monetary policy review was on expected lines. The monetary policy committee maintained a status quo on policy rates. The transmission of the 100-basis-point rate cuts done during February-June into the economy is yet to be complete, which appears to be the underlying approach in the August policy review.  

On the projections front, while the MPC has retained its GDP forecast at 6.5%, inflation is projected to go down to 3.1% from 3.7% earlier in FY26. Inflationary trends have been surprising on the positive front each month which has resulted in the downward revision of the retail inflation. However, the central bank expects the retail inflation to increase to beyond 4% from the fourth quarter of FY26 onwards, nearing the 5% mark in the first quarter of FY27 indicative of the narrow window of further monetary easing. The retention of the GDP growth forecast for FY26 is surprising and suggestive of the central bank's confidence in the progression of domestic economic activity at a time when the uncertainty and volatility in global economic environment remains elevated.

Low interest rates are necessary but not sufficient in themselves for lifting investment and consumption demand. Larger lifting factors are employment conditions, wage growth, stable policy environment and correction of structural limits (such as factor market reforms, tax structure, infrastructure, etc.). Thus, monetary policy has limited maneuvering power to propel demand side factors in the short-run.

The benign inflationary trend is quite favourable, especially for a sustainable improvement in consumption demand. However, the future course of monetary policy would be dependent on how the inflationary trajectory pans out in the next few months. We believe there is some scope for further monetary easing (maximum 50 bps). However, this may unfold if the impact of the tariff war on Indian economy becomes too adverse. 

(Ketaki Patil)

SUNNY AGRAWAL, HEAD OF FUNDAMENTAL EQUITY RESEARCH, SBICAPS SECURITIES

Market is unlikely to react much as the outcome was in line with expectation...it might move sideways in the near term. The only thing which has slightly taken negatively by the street is the inflation forecast for first quarter of 2027. RBI's FY27 inflation (of 4.9%) is on higher end of the band. If you look at a tolerant band of RBI, that is always been 4-6%. 

Now people are doubtful that whether there will be any further rate cut or not. But again, I think situation is very fluid looking at a global uncertain business environment. Maybe in October, and during October policy, we will get more clarity. At that time, maybe that again, my personal assessment, all this uncertainty pertaining to US trade deals will be out of the way. And that can have a significant impact on your export number, your current account number. In terms of growth, I think no negative surprises. 

There was a hope of one rate cut in FY26, but looking at a forecast of Q1FY27, most of the analysts which I am talking to, they are of a view of no rate cuts in the year. But again, I am hopeful because the situation is very, very fluid. Nobody knows what will happen 3-4 months down the line because of the ongoing trade uncertainty. 

(Akash Mandal)

SADAF SAYEED, CHIEF EXECUTIVE OFFICER, MUTHOOT MICROFIN LTD.

Holding the rates was on expected lines, especially since the RBI had front-loaded a 50-bps rate cut in the last monetary policy. The focus now shifts to the transmission of these rate cuts. So far, out of the 100 bps cut since the new governor took charge, only 55 bps has been passed on. The remaining transmission is critical to ensure that the benefits reach consumers. Effective transmission will support credit growth, which in turn will boost consumption and contribute to overall GDP growth. 

(Rizwan Ali)

SHISHIR BAIJAL, CHAIRMAN AND MANAGING DIRECTOR, KNIGHT FRANK INDIA

The RBI's decision to hold rates steady underscores its calibrated approach amidst a complex economic backdrop. While inflation has moderated, it remains uneven, and the central bank is understandably cautious given the persistent risks from global commodity prices, geopolitical tensions, and volatile capital flows.

For the real estate sector, the continuation of stable policy rates and surplus liquidity conditions provide much-needed predictability and helps preserve affordability for homebuyers. Notably, some banks have already reduced consumer home loan rates--a move that supports housing demand, especially in the mid-income and low-income segment--and more transmission in interest rates is underway. This policy continuity, coupled with easing credit conditions and steady economic growth can provide a boost to the affordable housing categories.

(Rizwan Ali)

CHINTAN PANCHMATYA, FOUNDER, SWITCH MY LOAN

With the RBI expected to hold the repo rate steady at 5.50% and maintain its 'neutral' stance, credit demand will likely sustain momentum into the festival season. After a cumulative 100 bps (basis points) easing earlier in FY26, this 'dovish pause' lets households and businesses absorb rate cuts made so far. We expect segments like consumer durable(s), car(s), personal, and home loans to remain resilient amid stable borrowing costs.  

(Janwee Prajapati)  

 End

Compiled by Vinodini Yadav

Filed by Ashish Shirke

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