Lakshmanan V, GROUP PRESIDENT & HEAD – TREASURY (TREASURER), Federal Bank –
“The MPC has in a platter given what the market expected. A Rate cut alongside long dated Swaps and OMOs, not only keeps the liquidity promise intact, but also will keep the Currency in relative balance. The market appears to have reacted positively on all counts.”
Vinod Francis, GM & CFO, South Indian Bank –
“The RBI’s decision to trim the repo rate by 25 basis points while maintaining a neutral stance signals a calibrated shift towards supporting growth, without sending an overly aggressive easing signal to the markets. RBI’s communication is straight forward that the apex will do whatever it takes to support growth given the deflationary trend in the price gauge.”“By combining a modest rate cut with a neutral stance, the MPC has tried to balance softening inflation with still-resilient growth. This in my view is necessitated by the weakening Rupee and narrowing interest rate spread between India and the US markets.”
Dr. K. Paul Thomas, ESAF Small Finance Bank –
“The RBI MPC‘s 25 bps repo rate reduction, paired with a neutral stance, reflects a data-dependent approach that prioritises supporting growth against the backdrop of easing inflationary pressures. However, the rate-setting panel has retained its flexibility for future policy decisions based on incoming data.”
