Industry Odisha Bureau, April 6: Since the significant Monetary Policy Committee (MPC) meeting (first one in the new fiscal year of 2026-27) has been officially scheduled to be held from today (April 6) till April 8 amidst the ongoing West Asia tensions that has triggered worldwide energy chaos, all are agog to know what wise decisions are on anvil to tackle the ongoing financial scenario that has been threatening economic developments globally.
According to a report published by the SBI Research, the global uncertainties may prompt RBI keep its prime policy rates unchanged.
As per media reports, the SBI Research report stated, “As the situation is still evolving, it’s expected that RBI to maintain the status quo in the upcoming policy” owing to the unabated conflict in the Gulf region since February 28 till date.
It has further been reported that the Meteorological warning of a potential ‘Super El Nino’ could further immensely impact and worsen the inflation dynamics.
Notably, the Indian Meteorological Department (IMD)’s models warn that the ‘Super El Nino’ has an eighty per cent (80%) chance of formation in August this year. Such a development could threaten record-breaking global heat. NOAA and other experts suggest that this strong and warm-water Pacific event is likely to peak in winter of 2026-2027. Thus, this could trigger extreme heat-waves, intense floods and agricultural disruptions.
Moreover, the SBI Research report has highlighted “mounting inflationary pressures” on India. It has further highlighted that “imported inflation has already reached 5.4 per cent (5.4%) and could rise further”.
The SBI Research report has also projected that “Consumer Price Index (CPI) inflation may stay above 4.5 per cent (4.5%) over the next three quarters”.
In addition to this, SBI Research report has also highlighted: “FY26 recorded the highest foreign institutional investor (FII) outflows since 1991 at $16.6 billion, while the balance of payments is likely to remain in deficit in FY27”.
Hence, it is anxiously awaited to watch whether the RBI’s MPC meeting tread cautiously or not weighing the current pros and cons, and also prescribing the healing pills by taking stock of the pecuniary positions at present as well as paving the future fiscal path in a healthy manner domestically.
