Given external headwinds that could complicate the path forward, it is appropriate to maintain patience now

Global economic uncertainties have prompted the Reserve Bank of India to maintain a neutral stance and keep the repo rate unchanged at 5.5 per cent for the second time in a row. Apart from the United States’ whimsical tariff regime, prolonged geopolitical tensions, and volatility in global financial markets pose considerable risks to the growth outlook. The unanimous decision of the Monetary Policy Committee (MPC) to continue the pause mode suggests that the central bank is cautiously awaiting the global factors to play out, and also the impact of the previous rate cuts — a total of 100 basis points since February. Significantly, the RBI has raised its projection of GDP grow

See Full Page