Overview

• The RBI’s Monetary Policy Committee kept the repo rate at 5.5% in its latest review and signalled space for further easing.
• Goldman Sachs expects an additional policy rate cut before year-end based on improving domestic conditions.
• The central bank’s statement hinted at the possibility of a 25 basis points reduction if growth needs support.
• A favourable monsoon and GST rate rationalisation prompted an upward revision to the FY26 growth outlook.
• Analysts say supply-side credit conditions should improve, though weaker demand and external risks such as higher H‑1B costs and a 50% US tariff on Indian goods could temper lending.