global FX / institutional
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MUFG Research · Global / Japan · RBI holds repo at 5.25%, monsoon and El Niño cloud the rate path
MUFG's FX desk frames the June 5 hold as a package: the rate decision paired with FCNR-B and swap measures to support the rupee, arguing the RBI is running FX and monetary policy as a coordinated shield against imported inflation and capital-flow pressure.
“The RBI June package reflects a coordinated effort to stabilise the rupee while keeping monetary policy flexibility intact.”