The MPC Minutes revealed that the decision of maintaining status quo on the repo rate (at 5.50%), and the monetary policy stance (at neutral) was unanimous
Download ReportQuantEco Research || MPC Minutes - It ain’t over ’til it’s over
The MPC members were united in their assessment with respect to the current state of stronger-than-anticipated disinflationary momentum, which, as projected by the RBI, would result in CPI inflation undershooting the 4% target in FY26. The emergence of conflicting signals with respect to the current vs. projected growth-inflation balance appears to have imparted a degree of caution. The MPC noted that the front-loading of interest rate cuts supplemented by adequate and comfortable liquidity easing steps offers space for assessing the uncertain macro risks as well as the policy transmission. Overall, it appears that the uncertainty on the durability of the elevated level of tariff on India and the domestic policy response thereof could impart some downside (vis-à-vis consensus including RBI’s estimates) to projections of both growth and inflation over FY26 and FY27.