RBI should adopt wait and watch stance says ASSOCHAM

The forthcoming monetary policy of the Reserve Bank of India should adopt a wait and watch stance rather than go in for a rate cut at this stage, ASSOCHAM has pointed out. The RBI has recently injected liquidity into the market through various measures including a 25 basis points cut last time. We need to be patient for these measures to have an impact on capex growth and consumption. Given this backdrop, we believe that the RBI is expected to hold rates steady during this policy cycle. A rate cut at this stage may only lead to pressure on the rupee, though it may increase consumer borrowing, ASSOCHAM President Sanjay Nayar has stated. He noted that despite challenges on the external front, the Indian economy is expected to remain on a firm footing in the new fiscal. GDP growth near about 6.7 per cent for the FY'26 is a reasonable expectation while retail inflation is likely to remain under check. Crude prices are behaving well in the wake of softening of geopolitical concerns.

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