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Policy● Neutral for Indian equities
A lot has changed since the last RBI meeting, when the Governor seemed dovish
The brief
- The October 2026 RBI review comes amid government borrowing, rising global rates and elevated crude oil
- Bond supply may outweigh demand, push yields higher
- RBI may shift govt borrowing towards shorter tenures in H2
- Govt keeps restraint, H2 borrowing pegged at Rs 7.86 lakh crore
- Lower borrowing plan signals tax buoyancy, offers relief for bond yields
- Centre cuts FY27 gross borrowing estimate to ₹15.99 lakh crore; H2 bond sales set at ₹7.86 trillion