By:- Ankita Pathak, Head Global Investments, Ionic Asset.
“In line with our house view, the RBI kept rates unchanged following its notably dovish policy in December 2025. We believe that there is still scope for further growth reflation, with the baton now with monetary policy, as fiscal policy prioritizes stability and fiscal consolidation. Also, with the key trade deal with the US now behind us, the strain on INR could likely alleviate, with foreign capital potentially returning to India and export pressures easing. With this hypothesis, the policy prescription will be to prioritize growth reflation. There’s already space available from inflation, growth, fiscal, and currency angle and US rate cuts could provide further tailwinds.”