New Delhi, Aug 5 (IANS) Industry leaders and economists on Wednesday welcomed the Reserve Bank of India's (RBI) decision to keep the repo rate unchanged at 5.25 per cent and maintain a neutral policy stance, saying the move provides policy stability and reflects confidence in India's economic resilience despite global uncertainties.
The Reserve Bank of India (RBI) kept the repo rate unchanged at 5.25 per cent while maintaining the status quo in its latest Monetary Policy Committee (MPC) meeting amid lingering geopolitical tensions and global trade uncertainties.
Reacting to the policy decision, D. Muthukumaran, Group Chief Financial Officer at Essar, said the upward revision in the growth outlook is a strong endorsement of India's economic resilience amid an uncertain global environment.
"The RBI's upward revision of the GDP growth outlook, despite global uncertainties, is a positive affirmation of India's economic resilience. Equally welcome is the decision to hold the repo rate steady through an active investment cycle, even with inflationary pressures at play, as it provides businesses with much-needed policy stability,” Muthukumaran said.
“For infrastructure and other long-gestation sectors, a stable cost of capital is as important as sustained public investment in supporting long-term growth," he added.
Anil Bamboli, Head of Fixed Income at HDFC Asset Management Company Limited (HDFC AMC), said the MPC's decision was largely in line with market expectations and reflected a prudent and calibrated approach in the current environment.
“Looking ahead, considering elevated geopolitical tensions, steady domestic growth and contained inflation, the MPC’s decision to maintain status quo seems to appear appropriate,” he stated.
Dr Manoranjan Sharma, Chief Economist at Infomerics Ratings, described the August 2026 policy as a "quiet affirmation" of the RBI's current policy trajectory.
“Despite global uncertainty and episodic domestic demand softness, the RBI’s revised FY27 growth projection of 6.7 per cent suggests confidence that the recovery is broadening beyond a few high-contact and investment-intensive sectors. The upgrade, though modest, implicitly recognises sustained public capex, stabilising exports after recent headwinds, and still-robust services activity,” Sharma mentioned.
--IANS
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