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Below the Quote on RBI Monetary Policy by Dr. Manoranjan Sharma, Chief Economist, Infomerics Ratings

“Easing inflation, the manifest need to shore up economic growth and the evolving growth inflation trade-off necessitated 25 bps in the Repo Rate to 6 % on top of the 25 bps cut in February 2025. As a consequence of this

measure, all external benchmark lending rates would fall by 25 basis points, thereby providing welcome relief to borrowers in interest rate-sensitive segments, such as housing loans, auto loans, education loans, and other personal

loans. In a future guidance measure, the Monetary Policy stance was shifted from “neutral” to “accommodative”. This was an unmistakable indication of further reductions in the Repo Rate. To my mind, we see a Repo Rate

reduction of 75-100 bps in FY 26. Given the evolving macroeconomic growth and inflation trajectories, the growth and inflation projections were tempered as anticipated by us.”

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