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Below the Quote on RBI MPC Reaction by Mr. Ajay Kumar Srivastava, MD & CEO, Indian Overseas Bank 

“The RBI’s decision to reduce repo rate by 50 basis points to 5.50% and CRR by 100 basis points in four tranches indicates a strong and timely policy shift that aligns with balancing growth with price stability. Besides this, the revision in CPI inflation to 3.7% for FY26 also shows RBI’s confidence in inflation being aligned with its 4% target. The decision in CRR cut which is expected to release INR 2.5 lakh crore in primary liquidity, will ease credit conditions in the banking system. This overall policy reflects a well calibrated and thoughtful approach with the GDP projected at 6.5% in FY26 and a steady quarterly trend. The pickup in non-gold imports and 14% increase in gross FDI also indicate robust domestic demand and global investor confidence in India’s structural strength. We believe this policy decision is expected to provide the necessary drive for credit expansion in priority sectors which will fasten the inclusion economic growth.”

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