Quote on RBI MPC policy by Viram Shah, Founder & CEO, Vested Finance
Below the Quote on RBI MPC policy by Viram Shah, Founder & CEO, Vested Finance
"The Reserve Bank of India's decision to cut rates by 25 basis points marks a critical inflection point for Indian markets. This isn't just another adjustment in the monetary policy cycle—it's a defensive response to a fundamentally changing global trade landscape. By slashing growth forecasts from 6.7% to 6.5% and shifting to an "accommodative" stance, the RBI is acknowledging that Trump's tariffs represent a structural threat to India's growth model. We believe cumulative rate cuts could reach 100 basis points reflecting that trade tensions will persist rather than resolve quickly. For investors, this suggests a market environment where defensive positioning may outperform growth-oriented strategies despite monetary easing.
India remains the fastest-growing major economy, but the dramatic deceleration from 9.2% to 6.5% in just one year underscores the vulnerability of even the strongest economies to protectionist policies. As global recession probabilities climb to 60%, the RBI's preemptive action may prove crucial in maintaining India's relative economic outperformance."
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