Major banks have revised their forecasts for the Reserve Bank of India after recent softer inflation readings. Standard Chartered Bank has already dropped its call for an August rate increase. Most institutions now anticipate the central bank will stay on hold through FY27.
Bank economists surveyed by The Economic Times indicate that the RBI is likely to prioritise growth over further inflation control measures. Some analysts still see possible rate increases later in the year, though these would come at the back end of the period.
Standard Chartered Bank withdrew its August policy meeting forecast following the last review. Other institutions including Kotak Mahindra Bank and ICRA Ratings have aligned with expectations of no immediate changes.
The shift reflects updated views on inflation trends and the central bank's focus on supporting economic expansion.
