RBI signals growth-focused monetary stance amid inflation concerns. The central bank is expected to keep overnight call and repo rates below the policy repo rate of 5.25% to support economic growth facing headwinds from imported inflation and geopolitical tensions. With Goldman Sachs revising India's GDP growth forecast down to 5.9% for 2026 from 7%, policymakers are adopting a countercyclical approach. Economists argue that tightening monetary policy in response to external supply shocks would only worsen growth prospects. The RBI has already injected significant liquidity through bond purchases and supported fiscal measures. The April policy review will be crucial as markets watch overnight rates for signals on the monetary trajectory ahead.
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