It comes after a significant 100-base-point cut in June 2025 and decreased Cash reserve ratio (CRR) up to 3% by the end of 2025, runs aimed at increasing liquidity and supporting growth.
Alert stance despite the first ease
COO and Product Head in Sriram Wealth Limited Naval Kagalwala said that RBI is expected to align with 4% target in the near period with inflation – but the April -June 2026 is expected to increase by 4.9% in the 2026 quarter – the scope for further aggressive rate cuts is limited.
The Reserve Bank of India maintains a repo rate at 5.50% in August 2025. This decision follows the reduction in the earlier rate and a decrease in CRR. Experts suggest focusing on high-rated bonds with a period of 2-4 years. There may be a possible rate cut in October 2025. Investors should consider a certain income strategies of the medium period. Global economic factors and Federal Reserve policies will affect future decisions.
“While inflation is expected to be in line with the RBI’s 4% target, a forecast inflation of 4.9% in the required 4.4% terminal rate and April-June 2026 reduces the possibility of further rates.
“we suggest Investors To see funds investing in high-rated bonds that maintains a period of 2 to 4 years. This includes categories Corporate bond fundBanking and PSU funds, short term and target maturity funds, ”explained by Kagalawala.
Long -time break, selective long end opportunities
Umesh Sharma, Cio-Wealth Company Loan in Mutual Fund, stated that MPC is scheduled for a long standing stagnation, although a minor 25-base-point cut on the end of the year remains on the table. “Investors can continue in the moderate period. fixed income Strategies and selectively detect long -term opportunities, based on their risk hunger, ”Sharma suggested.
Cut in October is possible, fed policy in meditation
Hitashi Jain, a strategist of Yes Securities (India) Limited, believes that the RBI may cut a calibrated 25-base-point rate in the October 2025 policy meeting citing an uneven economic reform and ongoing trade tension.
“If the development decreases with the RBI’s FY26 GDP target, the possibility of cutting two additional rates increases meaningfully. By the US Federal Reserve, the RBI can find more space to work without trying the capital outfits even more easily,” Jain said.
What should investors do?
For Fixed income investorThe consensus is clear: Focus on quality, medium -term strategies keeping a close watch on the upcoming global and domestic triggers.
The current atmosphere is in favor of the position in the middle of the curve, which has strategic moves with strategic moves for people with high risk tolerance.
,Rejuvenation: Recommendations, suggestions, thoughts and opinions given by experts are their own. They do not represent the ideas of economic time)