RBI monetary policy next week: What fixed-income investors should expect — here's what experts say
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- Reserve Bank of India will hold its Monetary Policy Committee meeting from 3 June to 5 June 2026.
- Basant Bafna says inflation for FY 2027 is expected to be revised upwards but remain within the RBI’s 2‑6 % tolerance band, driven by crude price pass‑through and El‑Niño food price impacts.
- Basant Bafna expects the RBI to continue intervening in the foreign‑exchange market to support the rupee amid steep depreciation and to attract foreign currency inflows.
- Harsimran Sahni predicts the RBI will adopt a wait‑and‑watch stance, keeping policy rates unchanged in the near term.
- Harsimran Sahni forecasts domestic benchmark bond yields staying roughly between 6.95 % and 7.05 % as global yields rise sharply.
Why it matters: Domestic bond investors gain clarity as yields stay near 7%, while import‑dependent firms risk higher costs if inflation breaches the 6% ceiling, prompting RBI to intervene in the forex market.
