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Informist, Friday, Feb. 6, 2026

 

MUMBAI – Sachin Bajaj, executive vice president and chief investment officer, Axis Max Life Insurance, said the following on the Reserve Bank of India's sixth bi-monthly monetary policy for 2025-26 (Apr-Mar) detailed on Friday:

 

The MPC meeting comes against a backdrop of heightened geopolitical uncertainty, inflation below the lower end of the MPC tolerance band, and volatile currency markets.

 

After cutting policy rates by 125 basis points over the past year, the Monetary Policy Committee today unanimously decided to keep all policy rates unchanged. While inflation remains below the RBI target of 4%, the Bank expects inflation for Q1 and Q2 2026 to reach 4% and 4.2%, respectively, with an upward revision mainly on account of rising precious metal prices. Additionally, the recently concluded India-EU trade deal and the potential India-US trade deal are expected to provide a boost to growth going forward.

 

The policy announced today was a status quo decision. However, we expect space for further monetary support if growth slows down. We anticipate a final 25-basis-point cut in the repo rate to 5% during the early part of the next financial year to address growth concerns emanating from the uncertain global environment.  End

 

Compiled by Simran Rede
Filed by Avishek Dutta

 

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