New Delhi, Aug. 14 -- The Reserve Bank of India's Monetary Policy Committee may contemplate additional policy rate reductions if forthcoming GDP data falls short of projections and the US Federal Reserve initiates substantial rate cuts in response to deteriorating labor market conditions, according to an HSBC Mutual Fund analysis.

The RBI-MPC has maintained its GDP growth forecast for FY26 at 6.5 percent during its most recent policy meeting. The central bank projects quarterly growth rates of 6.5 percent in Q1, 6.7 percent in Q2, 6.6 percent in Q3, and 6.3 percent in Q4.

The monetary authority opted to keep the repo rate steady at 5.50 percent while maintaining its neutral policy stance, following earlier frontloaded cuts totaling 100 ...