Blasé Capital RBI COMMENTS

The MPC's February 2026 policy reflects a strategic shift from rate easing to structural growth. The central bank signals confidence in a robust 7.4 percent GDP growth forecast, and stable inflation (2.1 per cent). Key interventions include doubling collateral-free MSE loans, and bank lending to REITs to deepen capital markets. The launch of "Mission SAKSHAM" for 1.4 lakh co-operative banks, and new digital fraud compensation frameworks emphasise a secure, inclusive financial ecosystem. This "neutral" stance balances macroeconomic stability with aggressive regulatory support for productive sectors.

Dhiraj Relli, MD & CEO, HDFC Securities

RBI’s decision to permit bank lending to REITs will evolve the funding ecosystem. Indian REITs, with $27 bn of AUM across office and retail segments, have relied on capital market issuances, and sponsor-backed financing, and access to bank credit will serve as an additional funding avenue that diversifies the liability stack and enhances refinancing flexibility.

Shishir Baijal, CMD, Knight Frank India

The upward revisions to GDP and inflation projections were not accompanied by any shift in commentary, reinforcing the status quo stance. What stood out was what the RBI chose not to highlight. Despite call rates trading meaningfully below the repo rate, it made no reference to them, a departure from its earlier emphasis on keeping call rates aligned with the policy rate. We interpret this as a subtle signal that the RBI is uncomfortable with current yield levels. This was further reinforced when the governor mentioned that he expects the overnight rate to transmit across the market.

Sandeep Yadav, Head (Fixed Income), DSP Mutual Fund

The current stance gives it flexibility to respond to changing liquidity conditions. Over the past few weeks, a mix of durable and short-term measures ensured surplus liquidity, pushing overnight rates below the Repo and SDF levels. This has improved carry in money markets and led to a 20-30 basis point fall in money market yields. However, spreads over effective policy rates are still about 50-60 basis points higher than March levels, when liquidity was in deficit. Markets had expected more clarity on liquidity measures or OMOs in the policy, and in the absence of that, bond yields moved up marginally by around 3-5 basis points. Current spreads between the repo rate and the 10-year benchmark remain attractive versus long-term averages.

Basant Bafna, Head (Fixed Income), Mirae Asset Investment

The RBI voted unanimously to maintain the policy repo rate, and retained its "Neutral" stance. This reflects a strategic "wait-and-watch" approach, aimed at balancing robust domestic growth with evolving global macroeconomic conditions, while emphasizing benign inflation and steady growth. Moving forward, market trajectories may be shaped by evolving macroeconomic data and insights from the new series of GDP and CPI to chart the future course of policy. As the monetary cycle nears the end of its easing phase, a “lower-for-longer” rate environment is expected to prevail, with the pace and timing of policy normalization contingent upon the durability of the economic recovery.

Amit Modani, Lead (Fixed Income), Shriram AMC

RBI delivered a status quo policy. FY26 CPI Inflation outlook has been retained at similar levels as last policy, while 1H27 inflation has been revised marginally higher to 4.1 per cent due to increase in prices of precious metal. GDP Forecast for 1H27 has been revised upwards to 7 per cent, aided by the recent comprehensive trade pact with the EU, and the US.

Amit Somani, Deputy Head (Fixed Income), Tata Asset Management

The decision to maintain the status quo on both the policy rate and stance was in line with our expectations. Based on our estimates, the proposed tariff reduction could add 20 bps to GDP growth, leading us to project growth of 7.2 per cent for FY27. However, the forthcoming new series for both CPI and GDP will need close monitoring. We expect the RBI to continue liquidity injection measures, particularly in the second half of March when tax-related outflows typically intensify. Going ahead, we do not expect further rate cuts from the RBI unless downside tail risks to growth materialise.

Rajani Sinha, Chief Economist, CareEdge Ratings

RBI's decision means that home loan EMIs will not change. This will keep buyers engaged but does nothing to lift demand further, and does nothing to make housing more affordable. Demand for affordable and mid-segment homes remains strong, but continues to be challenged by escalated pricing, which affects affordability. A rate cut would have potentially brought at least some fence-sitters back to the market. Overall trends show that affordable housing remained considerably subdued in 2025, in terms of both sales and new launches.

Anuj Puri, Chairman, ANAROCK Group