Economists polled expect the RBI to maintain its repo rate at 5.50% in the upcoming October 1 meeting.
This stance is seen as a cautious approach to balance inflation, growth, and currency dynamics.
India’s economy grew 7.8% YoY last quarter, reducing urgency for further cuts.
Private investment remains lackluster, limiting the impact of prior rate cuts.
With external risk elevated (tariffs, currency), RBI may lean more hawkish on caution.
Markets have partly priced a pause through end-2025, with cuts tentatively placed in 20
26.
Bond yields have moved up modestly amid inflation and volatility concerns.
Banking and financial names could see sectoral impact from central bank st
ance.
The policy meeting will be key in calibrating market expectations.
Investors will watch RBI commentary on liquidity, credit growth, and external balance.