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Informist, Wednesday, Aug. 5, 2026

 

MUMBAI – Ashwani Dhanawat, executive director and chief investment officer at Shriram General Insurance, said the following on the Reserve Bank of India's third bi-monthly monetary policy statement for the financial year 2026-27 (Apr-Mar) detailed Wednesday:

 

RBI's decision to keep the repo rate unchanged at 5.25% was largely expected. For insurers, however, the policy narrative is of more significance than the policy rate itself. The RBI's assessment of inflation, liquidity, and the future rate path will have a greater bearing on reinvestment yields across insurers' fixed income portfolios than the headline decision. Adoption of a neutral stance signals that the central bank prioritises preserving flexibility amid persistent food, fuel-led inflation, and global uncertainties, while remaining confident about India's growth resilience. A stable interest rate environment supports disciplined asset-liability management and long-term capital deployment for all insurance players. Further, as inflation evolves and liquidity conditions normalise, monitoring the bond yields trajectory will be key to influencing investment income, enabling insurers' ability to deliver sustainable value to policyholders.  End

 

Compiled by Radhika Tiwari

Filed by Shubhayan Bhattacharya

 

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