Assocham urges RBI to hold rates, advises 'wait and watch' approach

Industry body Assocham on Wednesday urged the Reserve Bank of India (RBI) to maintain a “wait and watch” approach in its upcoming monetary policy rather than opting for an interest rate cut at this stage. 

Assocham president Sanjay Nayar emphasised that the RBI has already injected liquidity into the market through various measures, including a 25 basis points cut in the previous policy review.  He stated that these efforts should be allowed time to take effect on capital expenditure (capex) growth and consumption before any further adjustments are made. “Given the current economic backdrop, we believe the RBI should hold rates steady during this policy cycle. A premature rate cut could place additional pressure on the rupee, though it might stimulate consumer borrowing,” Nayar added.

 

 

Despite external challenges, Nayar expressed confidence in the Indian economy's resilience, forecasting gross domestic product (GDP) growth of approximately 6.7 per cent for FY26. He also noted that retail inflation is expected to remain under control, aided by favourable conditions such as the softening of geopolitical concerns and stable crude prices.