 "RBI, Reserve Bank of India")
Today’s monetary policy committee (MPC) statement may be unexpected for the wider market in terms of the quantum of rate cuts but was in line with our assessment of ground reality and the needs of the economy. A robust gross domestic product (GDP) growth in the March quarter and broadbased falling inflation prepared the ground for the jumbo rate cut.
After the Covid-19 pandemic, this is the first time that the Reserve Bank of India (RBI) has reduced policy repo rate by 50 basis points (bps) to 5.5 per cent. This frontloaded larger cut will reinvigorate a credit cycle. The
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