Emkay Global Chief Economist Madhavi Arora on RBI Policy
This story was originally published at 11:10 IST on 5 August 2026
Register to read our real-time news.Informist, Wednesday, Aug. 5, 2026
MUMBAI - Madhavi Arora, chief economist, Emkay Global, said the following on the Reserve Bank of India's third bi-monthly monetary policy statement for 2026-27 (Apr-Mar) detailed Wednesday:
The policy tone is cautious albeit constructive, balancing uncertainties from the West Asia conflict, tighter global financial conditions, and El Nino risks against resilient domestic growth and robust FCNR+ (foreign currency non-resident) inflows. Despite Apr-Jun inflation undershooting the Reserve Bank of India's forecast, the Monetary Policy Committee has retained its emphasis on El Nino risks, while reiterating that any near-term price pressures would largely be supply driven, unless they broaden into second-round inflation effects for monetary policy to act. We expect core liquidity to peak in Jul-Sept before normalising in the second half of this financial year, as the FCNR+ window closes and currency leakage picks up. Accordingly, the RBI is more likely to rely on temporary liquidity absorption measures rather than tightening its policy stance. End
Compiled by Meera Nair
Filed by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
