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Below the Quote on RBI`s MPC Reaction by Shri. V. P. Nandakumar, Managing Director of Manappuram Finance Ltd. 

“The RBI has decided to pause policy rates and maintain a neutral stance, mainly because it requires more clarity on upcoming inflation data and the final US tariff structure, as these are currently creating greater uncertainty. The RBI estimates that, although headline inflation is presently under control, it may rise in the coming quarters, especially in Q4. Furthermore, the transmission of earlier rate cuts is unfolding smoothly. Therefore, the central bank believes that further easing is not necessary at the moment, as liquidity in the banking system is already in surplus, and the CRR cut announced earlier will further improve liquidity conditions. Although the RBI is flexible in its liquidity management, it remains cautious in averting excessive liquidity build-up in the system.”

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