India Inc applauds RBI’s much-awaited Rate Cut but flags Liquidity Concerns
The RBI cut the repo rate by 25 bps to 6.25%, its first reduction since May 2020 under Governor Sanjay Malhotra. It also raised the FY26 GDP forecast to 6.7% and set inflation at 4.2%. Industry leaders across banking, finance, manufacturing, and real estate have welcomed the move, highlighting benefits like enhanced digital security and increased consumption while also noting concerns over inflation and liquidity. Here is what experts had to say:
The RBI cut the repo rate by 25 bps to 6.25%, its first reduction since May 2020 under Governor Sanjay Malhotra. It also raised the FY26 GDP forecast to 6.7% and set inflation at 4.2%. Industry leaders across banking, finance, manufacturing, and real estate have welcomed the move, highlighting benefits like enhanced digital security and increased consumption while also noting concerns over inflation and liquidity. Here is what experts had to say:
