Shravan Shetty, Managing Director, Primus Partners, shares his view on the RBI’s decision to cut the repo rate by 25 basis points.He highlights that the rate cut is a welcome move that should help drive investments, aligning with the budget’s focus on boosting demand and improving utilization. Coupled with liquidity measures such as OMO and VRR auctions, this decision is expected to encourage private investments as demand rises.He also mentions that potential headwinds, particularly the risk of rising global tariffs, which could exert inflationary pressure. Given this uncertainty, the MPC’s neutral stance reflects a cautious approach to future monetary policy.

Alternate Publications 

CNBC TV 18