New Delhi: The RBI’s prudent monetary framework will reinforce market confidence, boost manufacturing and trade activities, and enhance India’s global competitiveness, leading industry chamber Assocham said on Friday.
The RBI’s decision to maintain a stable policy stance and adopt calibrated measures will strengthen economic growth, consumer demand, producers’ sentiment, and exporters’ competitiveness.
“The Monetary Policy Committee’s move to keep the repo rate unchanged at 5.25 per cent reflects a balanced and forward-looking approach amid evolving global and domestic challenges,” said Nirmal Kumar Minda, President, Assocham.
With inflation remaining within the tolerance band and growth momentum continuing, the RBI’s neutral stance provides much-needed policy certainty for businesses and investors, he noted.
The upward revision of GDP growth forecasts for FY27 at 6.9 per cent for Q1 and 7 per cent for Q2, reveals the resilience of the Indian economy, supported by sustained capital expenditure and landmark 9 trade agreements since 2020.
In the face of geopolitical uncertainties and fiscal pressures, the RBI’s calibrated approach will play a vital role in sustaining inclusive, stable, and long-term economic growth, added Saurabh Sanyal, Secretary General, Assocham.
Morgan Stanley said in its note that it continues to expect the RBI to undertake liquidity enhancement measures to aid policy transmission.
“Any further policy action is likely to hinge on the evolving growth-inflation dynamics,” it noted.
According to Sonal Badhan, economist, Bank of Baroda, the RBI has deferred giving its full year forecasts to April 26 as it awaits the release of new series this month. The RBI Governor also highlighted that the central bank would focus on maintaining sustained growth momentum going forward.
“Given this backdrop and revised inflation projection, we believe that the RBI has come to an end of its rate cutting cycle and would now opt for a long pause,” Badhan said.
(IANS)
