The Reserve Bank of India (RBI) kept key policy rates and its monetary policy stance unchanged, while continuing to monitor inflationary pressures and global economic developments, according to market reactions following the central bank’s latest policy announcement. Reacting to the policy decision, Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, said the RBI had expectedly maintained both rates and stance, while highlighting amplified risks on the inflation front. She noted that the central bank remains cautious amid evolving macroeconomic conditions and inflation concerns.
Bhardwaj said the bank expects a cumulative 50 basis points rate hike cycle to begin from October as policymakers seek to address inflationary pressures and maintain price stability. She added that the RBI’s assessment reflects increasing vigilance over inflation trends despite keeping rates unchanged in the current review. On the external sector, Bhardwaj said measures announced by the RBI to attract capital inflows are a positive step and could help ease pressure on the Indian rupee. According to her, stronger capital inflows would support currency stability amid global market uncertainties.
In Kolkata, traders and financial market participants are expected to closely track future RBI actions, particularly any signals on interest rate movements and liquidity conditions, as these could influence borrowing costs, investment activity and overall business sentiment in the city.