The Reserve Bank of India led monetary policy committee unanimously kept policy repo rate unchanged at 5.25% (in line with our expectation of ‘no rate cut’) and agreed to retain the ‘neutral’ stance, however one member, Prof Ram Singh retained his view that the stance be changed to ‘accommodative’ from ‘neutral’. The RBI upwardly revised the inflation expectations for this fiscal year to 2.1% vs 2% in the previous policy. The real GDP for Q1FY27 is projected higher at 6.9% from 6.7% in previous policy and Q2FY27 rose to 7% from 6.8% in the December policy outcome. However, there was no OMO announcement, rather Governor Malhotra said that the central bank would remain proactive in liquidity management
