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Below the Expert Comment on Post-MPC by CA Kinjal Shah, Vice President, Bombay Chartered Accountants` Society (BCAS)

“With the 25-basis-point reduction in the repo rate, bringing it to 5.25%, the Reserve Bank of India has delivered four rate cuts in 2025—25 bps each in February and April, a 50-bps cut in June, and 25 bps in December, bringing the cumulative reduction for the year to 125 bps. The decision was unanimous and reflects the RBI’s continued growth-supportive policy stance amid a benign inflation outlook.

GST rationalisation has boosted domestic demand, and festival-related spending has further contributed to growth across sectors.

Liquidity conditions are being addressed through OMO purchases of Rs 1 lakh crore and a $5 billion dollar–rupee swap in December to inject durable liquidity into the system.

Despite global headwinds, the Indian economy has shown resilience and is poised to maintain high growth, with the real GDP outlook for FY26 being revised to 7.3%. The combination of supportive monetary policy, robust domestic demand and growth outlook provides guidance on how credit and financial conditions may evolve over the near term.”

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