Amid the worsening tariff woes, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has decided to slash repo rate by 25 bps to 6 percent. Consequently, the standing deposit facility, the SDF rate, under the liquidity adjustment facility, shall stand adjusted to 5.75%, and the marginal standing facility, rate of the MSF rate and the bank rate shall stand adjusted to 6.25%. It also decides to change stance from neutral to accommodative.
FY26 real GDP growth projection cut to 6.50% from 6.70% with Q1 at 6.5%, Q2 at 6.7%, Q3 at 6.6% and Q4 at 6.3%. The growth projections have been revised downwards due to policy, trade uncertainties. FY26 CPI inflation seen at 4% v/s 4.2% forecasted in February, with Q1 at 3.6%, Q2 at 3.9%, Q3 at 3.8% and Q4 at 4.4%.
