The update deals with the MPC’s status quo on rates and stance. It wonders if the policy stability in light of CPI projection through Q1FY28 indicates a new view of natural interest rate. Based on this, a view is offered on the rate trajectory for FY27. Discussing the risks on the inflation front, it emphasises the RBI’s deeper look at the Core. On growth, saluting domestic high frequency indicators, the note discusses what could be fissures which could emerge in H2. The Report also discusses the successes on the external front and in managing liquidity, before providing a view on G-sec yields.
