🔑 RBI Policy Highlights (Oct 2025)

 

🔑 RBI Policy Highlights (Oct 2025)

  • Repo Rate unchanged at 5.50%; stance neutral.

  • Inflation forecast lowered to 2.6% for FY26.

  • GDP growth upgraded to 6.8% for FY26.

  • Liquidity management tweak – focus on 7-day operations for smoother rate transmission.

  • Easier credit norms – higher limits on loans against shares & IPO financing; lower risk weight for infra loans.

  • Rupee internationalisation push – cross-border rupee loans, use of surplus rupee balances in corporate bonds.

📊 Impact for Mutual Fund Investors

  1. Debt Funds –

    • Stable repo rate & lower inflation outlook mean bond yields may soften, giving potential capital gains in long-duration debt funds.

    • Short-term funds likely to see steady but moderate returns.

  2. Equity Funds –

    • Growth upgrade to 6.8% + improved credit flow can support corporate earnings, especially in infra, consumption, and financials.

    • Neutral stance ensures no liquidity shock, positive for equity sentiment.

  3. Hybrid / Multi-Asset Funds –

    • Balanced benefit: equity side gets growth push, debt side may gain from stable/softer yields, and gold may remain a hedge if global risks rise.

  4. Overall –

    • Policy is growth-supportive without inflationary worry → a positive backdrop for mutual funds across categories, though external global risks (oil, rupee weakness, foreign flows) remain watchpoints.

Disclaimer: The above views are based on the latest RBI policy announcements and are shared for informational purposes only. This is not investment advice. Mutual fund investments are subject to market risks; please read all scheme-related documents carefully and consult your advisor before making any decisions.

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