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Below the Perspective on RBI Policy by Mahendra Patil , Founder and Managing Partner, MP Financial Advisory Services LLP

“The RBI’s 25 bps rate cut signals a decisive shift toward supporting growth at a time when the Indian economy continues to outperform global peers despite an unfavourable external environment. With inflation easing sharply and also being anchored well within the RBI’s comfort zone, the central bank has gained valuable policy headroom to ease financial conditions. A sharper current account deficit improvement from 2.2% to 1.3%, record forex reserves of USD 686 billion covering 11 months of imports, and a system liquidity surplus of around Rs.1.5 lakh crore provide strong macro buffers. The RBI’s commitment to inject durable liquidity through Rs.1 lakh crore of OMO purchases further reinforces the growth impulse. Overall, today’s policy reinforces macroeconomic stability while laying a supportive foundation for further credit expansion, investment activity, and sustained GDP momentum in 2026.”

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