Perspective on RBI MPC by Narender Singh, Investment Manager on smallcase & Founder at Growth Investing
Below the Perspective on RBI MPC by Narender Singh, Investment Manager on smallcase & Founder at Growth Investing
“Today’s 25 bps rate cut marks more than a conventional easing move — it effectively signals the beginning of a new monetary regime where inflation stability is no longer the constraint, but growth durability becomes the core objective. What stands out uniquely in this policy is the RBI’s confidence in the quality of disinflation. Core inflation has not only softened but has become structurally anchored, giving the RBI comfort to deliver easing despite above-trend GDP growth. This is a rare macro mix — and the policy acknowledges it as a ‘Goldilocks window,’ something India hasn’t experienced in a decade.Another under-appreciated element is the scale of liquidity infusion — the ?1 lakh crore OMO purchases and the $5 billion FX swap together represent a pre-emptive move to ensure that credit conditions don’t tighten as growth accelerates. This sends a strong signal that the RBI wants to front-load liquidity and avoid any growth scare in 2026.For markets and corporates, the message is clear:
the RBI is building the foundation for a multi-quarter supportive financial environment, where lower cost of capital and stable inflation can drive capex revival, housing demand, and credit expansion. This is not a one-off cut — it is the start of an accommodative cycle calibrated for stability, not stimulus.”
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