By Mr. Vineet Agrawal, co–founder of Jiraaf.
Quote: “RBI’s decision to keep the repo rate unchanged at 5.25% while maintaining a neutral stance suggests that the central bank is prioritising flexibility at a time when the external environment remains unsettled. With FY27 inflation projected at 4.6% and growth at 6.9%, the policy does not materially alter the macro narrative, but it does indicate that the RBI is not yet ready to lean decisively in either direction. For markets, this keeps expectations anchored around a data-dependent path, where incoming cues on inflation, global commodity prices, liquidity conditions and external risks will matter more than the headline hold itself. The reference to global uncertainty and the West Asia conflict also tells investors that the RBI is closely watching imported inflation risks, which could limit room for any premature policy pivot.”
