RBI cut the repo rate by 50 bps and shifted to a “neutral” stance to pre-emptively use policy space amid inflation easing
Monetary policy acts with a lag. Acting early supports growth without waiting for more clarity
A 100 bps CRR cut will release ₹2.5 trillion in liquidity to aid transmission
RBI will likely keep short-term rates low to align with the easing stance
Policy depends on forward inflation, expected at 3.7% for FY26 with some upside risk
Rate cuts may pause if inflation holds. More easing possible if projections fall