Quote on RBI MPC Announcement by Rajeev Sharan, Head – Criteria, Model Development & Research, Brickwork Ratings
Below the Quote on RBI MPC Announcement by Rajeev Sharan, Head – Criteria, Model Development & Research, Brickwork Ratings
By cutting the repo rate by 25 bps to 5.25% while maintaining a neutral stance, the MPC has clearly prioritised sustaining growth without losing sight of its 4% inflation target. The move should bolster investment and consumption into 2026, reinforcing our FY2026 real GDP projection of ~7.2%. From a credit rating lens, the move should ease borrowing costs and shore up debt-servicing capacity, which is mildly credit positive for high-leverage corporates and interest-sensitive sectors. Having said that, a vigilant monitoring of external risks remains essential.
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