The Report illuminates the RBI policy decision taken in Jun’26. Charting the largely expected line on rates, the RBI also kept the stance unchanged. However, the posturing is evolving. Inflation projections have been bumped up with growth outlook depressed. The note discusses the implication of this on future rate trajectory. Further, and most importantly, several measures were announced to support the external sector. This was complemented by steps taken by the Government on the same. The Report assesses the impact of these steps on the INR. Finally, while little changed in hard terms on liquidity, a subtle shift in language may be a sign of things to come. The analysis concludes with a view on bond yields
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