In view of the growth-oriented Union Budget, low inflation and India-US trade agreement, the Monetary Policy Committee (MPC) of RBI will begin its three-day meeting from Wednesday. Experts believe that RBI has reduced the repo rate by 1.25 percent since February. Since there are no serious concerns over growth or inflation, it can maintain status quo on rates.
Madan Sabnavis, chief economist at Bank of Baroda, said the MPC is likely to keep the repo rate on hold and this could also be the end of the rate-cut cycle. At the same time, ICRA’s Chief Economist Aditi Nair said, the pause is appropriate at this time, so that the retail inflation for January 2026 and the GDP figures for 2023-24 to 2025-26 can be assessed. However, low inflation gives RBI scope to consider rate cuts.
