Manav Raheja, Senior Partner at Veritas Legal, Advocates and Solicitors,
The RBI’s decision to cut the repo rate after five years signals a proactive approach to balancing growth and inflation in a dynamic global economic landscape. This move comes right after a populist fiscal budget which provided tax benefits to the middle class. Financial institutions will now provide liquidity and encourage borrowing to support the consumption theme. That said, with US sanctions and market volatility, the RBI will need to closely monitor the situation and pull back due to uncertainties in global trade and monetary policies in current macroeconomic conditions.
