Reaction On RBI monetary policy By Mr. Srinivasan Vaidyanathan, Operating Partner, Essar Capital
Below the Reaction On Reaction On RBI monetary policy By Mr. Srinivasan Vaidyanathan, Operating Partner, Essar Capital
In a significant move, newly appointed RBI Governor Sanjay Malhotra has announced a 25 basis point cut in the repo rate, bringing it down to 6.25%—marking the first reduction in nearly five years. This decision signals a shift in monetary policy aimed at fostering economic recovery and stimulating growth amidst evolving global and domestic challenges. The RBI's rate-setting panel has projected India’s GDP growth for FY26 at approximately 6.7%, reflecting optimism about the economy's resilience.
“We welcome RBI’s decision to cut the repo rate by 25 basis points. Led by RBI’s new Governor Mr. Sanjay Malhotra, this rate cut is a timely and strategic move that will provide much-needed momentum to India’s investment cycle. By lowering borrowing costs, this decision will not only support business expansion but also create an environment conducive to long-term capital deployment across key sectors. For investors and businesses alike, a neutral monetary stance, stable inflation, and a projected 6.7% GDP growth signal confidence in India’s economic trajectory.”
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