RBI MPC Quote From Mr. Churchil Bhatt, Senior Executive Vice President- Investment, Kotak Life Insurance

“The MPC, expectedly, kept the policy repo rate and monetary policy stance unchanged. While the MPC acknowledged that domestic growth remained resilient and marginally raised its FY27 GDP growth forecast to 6.7% from 6.6%, it remains vigilant of the risks stemming from El Niño and developments in the Middle East. On inflation, the MPC drew comfort from the lack of broad-based inflationary pressures and highlighted that the recent uptick is largely on account of supply-side pressures. Full-year CPI projection was marginally revised down to 5.0% from 5.1%, while core inflation was lowered to 4.3% from 4.7%. The MPC also emphasized that it will remain proactive in liquidity management and will endeavour to keep overnight market rates aligned with the policy rate corridor. From a market perspective, the 10-year G-Sec yield is expected to remain range-bound, and the yield curve will remain steep.”