RBI reduces policy repo rate by 50 BPS and CRR by 100 BPS, supporting India’s growth momentum amid challenging global environment: PHDCCI
The RBI MPC decision to reduce the policy repo rate by 50 basis points (bps) to 5.5% will support India’s growth amidst continued global volatilities is highly appreciable, said Mr. Hemant Jain, President, PHDCCI.
We highly appreciate the RBI stance of reducing Repo Rate by 100 BPS from Feb 2025 to June 2025, with the standing deposit facility (SDF) rate adjusted to 5.25%, and the marginal standing facility (MSF) rate and the Bank Rate to 5.75%, he said.
The MPC’s decision to change the monetary policy stance from accommodative to neutral, driven by softening inflation, resilient growth prospects in the near and medium term, strong domestic demand and merchandise exports, he said.
Real GDP growth for FY 2025-26 is projected at 6.5%, supported by private consumption, fixed capital formation, strong rural and urban demand, and bright agricultural prospects due to an above-normal southwest monsoon forecast, he added.
CPI inflation for FY2025-26 has been revised downwards, projected at 3.7%, supported by record wheat production, higher pulses production, and a likely above-normal monsoon, said Mr Jain.
Going forward, India will continue to grow resiliently and robustly, supported by strong macroeconomic fundamentals and price, financial and political stability. Geopolitical tensions and global trade uncertainties pose downside risks, said Mr Jain.
