RBI Maintains Stability with Unchanged Repo Rate: Experts Highlight Liquidity Focus
Economists commend the RBI's decision to maintain the repo rate at 5.25%, shifting focus to liquidity management. Experts emphasize stability over aggressive rate cuts, highlighting prudent measures amidst revised GDP and inflation figures. The central bank prepares to navigate growth with data-driven policy decisions.
- Country:
- India
The Reserve Bank of India's decision to leave the policy repo rate unchanged at 5.25% has been met with anticipation, as economists and market experts highlight a shift towards liquidity management. According to Upasna Bhardwaj of Kotak Mahindra Bank, the move aligns with market expectations and reflects the RBI's focus on stabilizing liquidity over further rate cuts.
Sarbvir Singh, Joint Group CEO of PB Fintech, views the pause as a balanced and data-driven approach, allowing the economy to adjust to previous monetary easing efforts without exacerbating inflation risks. The decision underscores a strategic shift from rate adjustments to improving transmission across lending rates.
Santanu Sengupta and other financial leaders see this as a signal of 'watchful stability,' emphasizing quality growth over rapid rate reductions. With a revised GDP growth projection and low inflation outlook, the central bank appears poised to manage liquidity and yields effectively, while preparing for potential changes in inflation and GDP datasets.
ALSO READ
-
RBI Governor Foresees Prolonged Low Policy Rates
-
Currency in circulation has increased quite a lot in last one year: RBI Governor Sanjay Malhotra.
-
We have added 20 bps to GDP growth estimates due to various reasons, including US trade deal, says RBI Governor Sanjay Malhotra.
-
Policy rate to remain low for a long period of time, says RBI Governor Sanjay Malhotra.
-
We will compensate fraud-hit customers up to Rs 25,000, or 85 pc of total amount, as long as transaction is not malafide: RBI Governor.
Google News