SGI - Inputs on RBI MPC by Mr. Ashwani Dhanawat, ED & CIO, Shriram General Insurance
Below the SGI - Inputs on RBI MPC by Mr. Ashwani Dhanawat, ED & CIO, Shriram General Insurance
The Reserve Bank of India decision to reduce the repo rate by 25 basis points to 6% and adopt an accommodative stance reflects a strategic pivot to support economic growth amid the escalating global tariff war. This policy shift,
effective immediately, adjusts the SDF rate to 5.75% and MSF rate to 6.25%, aiming to stimulate domestic investment and consumption as trade frictions erode export performance and global growth decelerates. With FY26 GDP
growth projected at 6.5% and CPI inflation at 4%, the RBI anticipates a manageable balance, potentially aided by softer commodity prices. However, persistent external pressures could challenge these projections, necessitating
vigilant oversight to mitigate inflationary risks while fostering resilience in key sectors such as real estate and infrastructure. Market sentiment remains positive, though the efficacy of these measures will depend on navigating the complex interplay of global trade dynamics.
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