New Delhi, Sep 25
The Reserve Bank of India's monetary policy committee (MPC) is anticipated to maintain the status quo on the repo rate in its October review, considering the positive impact of GST reforms on demand, stronger-than-expected Q1 FY26 GDP growth, and an inflation trajectory which is expected to slope upwards thereafter, a report said on Thursday.
The inflation trajectory remained lower due to GST rationalisation (FY2026 average now around 2.6 per cent).
Similarly, the Weighted Average Lending Rate for fresh loans declined by 60 bps, compared to a 42-bps easing for outstanding loans.
According to the report, GST rationalisation is expected to dampen headline CPI inflation by 25-50 bps during Q3 FY2026-Q2 FY2027 relative to earlier estimates
"Average CPI inflation for FY2026 is now projected at around 2.6 per cent (against 3.0 per cent earlier)," the report noted.