Overview
- MPC voted unanimously to pause and said policy space remains available to support growth if trade-related risks intensify.
- FY26 projections were revised to 6.8% GDP growth and 2.6% average CPI, even as the ADB cut its India growth view to 6.5% citing tariff headwinds.
- The RBI highlighted elevated US tariffs—reported up to 50%—and related trade policy uncertainty as the main external drag likely to weigh on H2.
- A 22-point package was announced to bolster credit and resilience, including allowing bank financing of corporate acquisitions, higher limits on loans against shares and IPO financing, deferring ECL to April 2027 with a glide path to 2031, and phasing new Basel III norms from 2027.
- Forex reserves stood around $700.2 billion and equities rose after the decision, underscoring a solid external buffer and a positive market response.