Report on RBI MPC: The Art Of Doing Nothing – Status Quo For Longer

The Update discusses the decisions made in the RBI’s MPC Meeting of Feb’26. The Committee decided to hold rates, indicating that a long pause may be in the offing. This decision was buttressed on an uptick in inflation expectations, with Q2FY27 CPI now projected to be above target. Growth expectation has also turned rosier with a clearing of external headwinds meeting existing domestic momentum. The policy gave a pass on liquidity announcements, though several credit measures were mooted. The Report analyses the impact of the policy on yields and yield curve