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. 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 3.1% vs 3.7% in the previous policy. The GDP growth forecast was retained for the current fiscal year at 6.5% with risk evenly balanced, though geopolitical tensions posing headwinds. The RBI Governor also highlighted that the impact of 100 bps rate cut is still unfolding, and they are waiting for the transmission of previous cuts.
