2025-06-06 12:49:02 pm | Source: PR Agency
Views on RBI MPC by Dr. Bharath Supra, Associate Professor – Finance & Programme Chairperson, SBM, Navi Mumbai Campus
Below the Views on RBI MPC by Dr. Bharath Supra, Associate Professor – Finance & Programme Chairperson, SBM, Navi Mumbai Campus
The 50 basis point reduction in the repo rate, bringing it down to 5.5% is a surprise move, something that surpassed market expectations. I congratulate the Reserve Bank of India's MPC, under Governor Sanjay Malhotra, for this shot in the arm. It is exactly what India needed now to spur economic growth in the face of global uncertainties.
However, the rate cut's impact hinges critically on how effectively banks and financial institutions pass them on to end borrowers. The transmission of rate cuts to retail and SME segments has remained a sticky point. Without stronger transmission mechanisms, the RBI’s monetary easing may not translate into actual credit growth or consumer spending. I am confident that the banks and financial institutions will rise up to the occasion and do their part for the country.
However, the rate cut's impact hinges critically on how effectively banks and financial institutions pass them on to end borrowers. The transmission of rate cuts to retail and SME segments has remained a sticky point. Without stronger transmission mechanisms, the RBI’s monetary easing may not translate into actual credit growth or consumer spending. I am confident that the banks and financial institutions will rise up to the occasion and do their part for the country.
Above views are of the author and not of the website kindly read disclaimer
Disclaimer:
The content of this article is for informational purposes only and should not be considered financial or investment advice. Investments in financial markets are subject to market risks, and past performance is not indicative of future results. Readers are strongly advised to consult a licensed financial expert or advisor for tailored advice before making any investment decisions. The data and information presented in this article may not be accurate, comprehensive, or up-to-date. Readers should not rely solely on the content of this article for any current or future financial references.
To Read Complete Disclaimer Click Here
Latest News
Probo crosses 60,000 learners in opinion trading, ta...
Shriram General Insurance Partners with Contai Co-Op...
Macro Shots: US Inflation: Driven Less by Cyclicals ...
EcoCapsule Aug 2025 : The Cold War Turns Hot by SBI ...
OnMobile Reports First Quarter of Fiscal Year 2026 R...
NTPC Adopts Global-Business Continuity Framework (BCP)
Quote Market 15th August 2025 from Vinod Nair, Head ...
Quote on Gold 14th Aug 2025 by Jateen Trivedi, VP Re...
Quote on market wrap 14 August 2025 from Mr. Ajit Mi...
Quote on Weekly Market Outlook 15th August 2025 from...
