The Reserve Bank of India’s latest monetary policy decision reflects a dovish hold, as anticipated. This aligns with the thinking the central bank is still evaluating the impact of the cumulative 100-basis-points rate cuts since February 2025 and the transmission effect may need to play out a bit more.The RBI’s decision to halt the ongoing rate cut cycle aligns with the current economic indicators and the prevailing global geopolitical situation. The positive impact of these rate cuts is anticipated to gradually manifest through better credit growth and enhanced consumer spending, especially in the retail and housing sectors.
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