“The RBI’s decision to maintain the repo rate at 6.5% for the 11th consecutive time and reduce the Cash Reserve Ratio (CRR) from 4.5% to 4% is a timely and strategic move. Amidst heightened global uncertainties, rising energy costs, and fluctuating commodity markets, this monetary policy stance ensures financial stability and enhances domestic liquidity. The reduction in CRR might inject additional funds into the banking system, encouraging banks to lend more to corporates, particularly in critical sectors such as energy and infrastructure.”
– Dhanpat Nahata, Managing Partner at Essar Capital
“The Monetary Policy Committee’s widely anticipated decision to keep interest rates unchanged is a prudent and measured step. This along with a neutral monetary stance sends a strong signal of economic stability, which is vital for core sectors of the country.
This move supports steady financing conditions, enabling businesses to focus on executing large-scale infrastructure projects and advancing renewable energy investments. Predictable borrowing costs are essential for fostering growth and innovation in these capital-intensive sectors. As India continues to push for sustainable development and improved infrastructure, the RBI’s policy ensures that the momentum in these sectors remains uninterrupted, contributing significantly to the nation’s long-term economic goals.”
– Vaidyanathan Srinivasan, Operating Partner at Essar Capital
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