More Stories

Informist, Wednesday, Oct. 7, 2026

MUMBAI - Gaurav Kapur, chief economist, IndusInd Bank, said the following on the Reserve Bank of India's fourth bi-monthly monetary policy statement for 2026-27 (Apr-Mar) detailed Wednesday:

The outcome of the October MPC meeting was along expected lines. In the backdrop of heightened risks to CPI inflation, resilient and stronger-than-expected growth despite persistent energy shock and tightening financial and monetary conditions in key advanced economies, it was highly likely that monetary tightening would be pursued. Reflecting on evolving growth and inflation conditions, the RBI revised its baseline forecast of real GDP and inflation upwards. With economic growth resilient and financial conditions turning more conducive for growth following a significant increase in surplus liquidity in the banking system, the MPC has thus chosen to focus on ensuring price stability, especially as household inflation expectations for near-term and one-year ahead are rising.

Basis these baseline forecasts, it is now highly likely that the repo rate would be raised in the next two MPC meetings of December and February 2027 in order to ensure that the real repo rate is calibrated to account for inflation rising to the upper end of the tolerance band of 6% and staying well above the target of 4% over the next three quarters and the next fiscal year.  End

Compiled by Arundathi A R

Filed by Avishek Dutta

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.