The Indian Chamber of Commerce (ICC) has welcomed the Reserve Bank of India’s move to reduce the repo rate by 25 basis points from 5.5% to 5.25% while retaining its neutral policy stance.
Calling it a “strategic and timely decision,” ICC said the rate cut aligns with the recent moderation in inflation and is expected to provide a boost to economic activity and liquidity.
However, the Chamber also cautioned that global uncertainties continue to pose risks. “While the easing inflation offers room for policy support, global headwinds are far from over,” ICC noted, urging continued monitoring of external developments as India navigates its growth path.
