New Delhi, April 9 -- With inflation remaining benign, the Reserve Bank of India's Monetary Policy Committee (MPC) shifted its focus towards supporting growth, delivering a unanimous 25-basis point cut in the repo rate. The MPC also revised its policy stance from neutral to accommodative.

Further, with a reduction in the MPC's FY2026 forecasts for both CPI inflation and GDP growth by 20 bps, and clarity that the policy stance signals future rate direction and not liquidity conditions, we now expect an additional 50 bps of rate cuts in this rate cut cycle.

Decline in yields could spur bond issuances

With 50 bps cut in repo since February 2025 and sizeable infusion of durable liquidity by RBI, the yields on short-term as well as long-ter...