Vikram Chhabra, Senior Economist at 360 ONE Asset, said it was prudent for the RBI to base future policy decisions on updated inflation and GDP datasets, as both series are scheduled for revision.
He said there may still be room for at most one additional rate cut if the inflation outlook remains benign, but added that the policy focus is likely to shift towards more effective liquidity management.
Meanwhile, Vinayak Magotra, Product Head and founding team member at Centricity WealthTech, said the MPC’s decision was in line with expectations.
He said the RBI reiterated its proactive approach to liquidity management, highlighting steps taken in recent months to maintain ample liquidity. With bond yields hardening, he said the central bank has signalled vigilance in ensuring adequate system liquidity while factoring in forex operations and government cash balances.
Ashwini Shami, President and Chief Portfolio Manager, OmniScience Capital, said, “The continued neutral stance and no change in the policy rate were broadly expected. The upward revision in growth projections for the next two quarters reinforces India’s status as one of the fastest-growing major economies. The statement also highlighted high capacity utilisation and healthy balance sheets of corporates as well as the financial sector. Continued thrust on capital expenditure is expected to maintain growth momentum, further supported by a low inflationary environment”.