RBI Policy: No Rate Cut Expected, Focus Shifts to Liquidity Management

• Market experts anticipate RBI to maintain current interest rates, with 90% expecting stability in the upcoming policy.
• Hopes for a repo rate cut have diminished, especially after the India-US trade deal, reducing pressure on RBI for short-term relief.
• The market's primary focus is on liquidity management; experts hope RBI will use OMOs, VRRs, Operation Twist, or CRR cuts to support it.
• The 10-year government bond yield is projected to stabilize around 6.7-6.8% by March, with expectations for rupee stability against the US dollar.
• No significant changes are expected for CPI and GDP data, with RBI's FY26 GDP growth estimate at 7.3% and CPI at 2%.