RBI MPC maintained status quo, policy rates unchanged at 5.5% and neutral policy stance retained The Reserve Bank of India led monetary policy committee kept policy rates unchanged at 5.5% (in line with market expectations) and maintained its ‘neutral’ stance, marking the second consecutive pause after a series of rate cuts earlier in the year. The decision was unanimous, with all 6 members voting in favor of the outcome. The RBI revised down the inflation expectations for this year to 2.6% vs 3.1% in the previous policy. The GDP growth forecast was raised for the current fiscal year at 6.8% vs 6.5%. The RBI Governor also highlighted that total of 100 bps rate cut this year have led to 58 bps reduction in lending rates by banks. The market closed on a positive note as RBI Governor dropped dovish hints while keeping rates status quo
