Indication towards a more flexible interpretation of inflation targeting sets the stage for further rate cuts over the near term
NEW DELHI : Commenting on RBI’s Monetary Policy announced earlier today, Mr Harsha Vardhan Agarwal, President, FICCI said, “We welcome RBI’s decision to cut the repo rate by 25 basis points, a move that will provide much-needed support to the economy at this juncture”.
“RBI’s decision to ease the policy rate is a timely and forward-looking step and we hope that the banking sector would follow through on this cue and a lowering of lending rates will be seen. Further, while RBI has maintained a neutral stance with regard to Monetary Policy, the indication towards a more flexible interpretation of inflation targeting sets the stage for further rate cuts over the near term” Mr Agarwal added.
The Union Budget 2025-26 announced last week has laid a strong foundation for investment-led growth with an emphasis on manufacturing, MSMEs and infrastructure. Today’s rate cut complements these measures, lending further support to India’s growth outlook.
“FICCI is confident that the combined impact of a pro-growth budget and a supportive monetary policy will help strengthen India’s growth trajectory, support consumption, and drive long-term investments”, said Mr Agarwal.
Finally, we applaud RBI’s focus this year, as part of its Financial Literacy Week campaign, on the role of women in financial decision making. Women have critical role in undertaking household financial decisions. Empowering women to make sound financial decisions can go a long way in ensuring their economic well-being as well as contribute towards societal growth and is in alignment with Hon’ble Prime Minister’s vision of women led development.
