By:- Mr. Ajitabh Bharti, Co-founder and Executive Director of CapitalXB.
“This move, in my opinion, demonstrates a well-calibrated, wait-and-watch approach, especially given the significant global headwinds currently at play. With ongoing conflict in West Asia threatening energy supply chains and the critical Strait of Hormuz presenting substantial risks to India’s oil imports, Governor Sanjay Malhotra and the Monetary Policy Committee’s (MPC) choice to prioritize stability over any experimental steps seems both prudent and timely.
What really stands out is the unanimous 6-0 vote, reflecting a rare and clear consensus among policymakers. This underscores the delicate equilibrium between inflation and growth at the moment. On the positive side, domestic economic activity is showing resilience, with both manufacturing and services sectors continuing to expand. However, there are some notable risks on the horizon—sub-normal monsoon forecasts and currency volatility could impact this balance and need to be closely monitored.
It’s also important to highlight that the RBI has already implemented a cumulative 125 basis points in rate cuts since February 2025, which has provided considerable support to borrowers and the broader economy. By retaining a neutral stance, the RBI has kept its options open for the future—ready to consider another rate cut if growth falters, or to hold steady if inflation becomes a concern.
For India Inc. and retail borrowers, this decision is a signal to plan ahead, but with a sense of cautious optimism. The RBI is clearly keeping a close eye on the evolving situation, and it’s wise for all of us to do the same as we move forward”
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