Perspective on RBI Monetary Policy by Mr. Sanjay Kumar, CEO & MD, Rassense Pvt Ltd
Below the Perspective on RBI Monetary Policy by Mr. Sanjay Kumar, CEO & MD, Rassense Pvt Ltd
“The move by the RBI to keep the repo rate unchanged was much on the expected lines. While the economic dynamics in the home ground showcase a robust performance and outlook, global economic headwinds, due to geopolitical unrest and tariff-led uncertainties, continue to linger as a threat. This move is a well-calculated stance that will keep the inflation trajectory under control while ensuring steady growth at the same time.
The revision of the inflation forecast from 3.7% to 3.1%, primarily due to easing food prices, is a strong indicator of balanced economic conditions and growth. With the backdrop of favourable monsoon and robust kharif sowing indicating towards a lucrative rural household income, domestic food prices are likely to see further moderation, with some temporary spikes to adjust real-time course correction. The onset of the festive season will further augur well for the economy, keeping the external economic threats as distant as possible
However, we will need to watch inflation impact that may emerge due to geopolitical uncertainties, especially the access to competitive crude. Underpinning all of this will be the need for a steady rupee even if there are some short-term blips in export. At the macro-economic front, easing of supply side constraints in private investment can help spur FDI flow and stabilize the rupee.”
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