New Delhi, June 10, 2025.
Two economists had predicted what perhaps no one else did: a 50 basis point cut in interest rates by the Reserve Bank of India in June Moneary Policy Committee’s meeting. Now, they’re making another prediction, forecasting more cuts even as most experts see the cycle nearing its end.
Kaustubh Gupta, Co-Head Fixed Income, Aditya Birla Sun Life AMC Ltd, said, “With the RBI’s jumbo 50-bps repo rate cut and 100-bps CRR cut, policy easing has been front loaded. We view the policy as growth supportive and stimulative along with an indication of a clear resolve by policy makers to push for growth in an uncertain global environment. The governor also said that while growth is decent, aspirational growth is in the 7-8% range.”
Shekhar Bhandari, President-SME, Kotak Mahindra Bank Said “RBI’s 50-bps repo cut and 100-bps CRR reduction have provided a vital liquidity boost to the Indian SME sector. These measures would lower borrowing costs and free up more funds in the banking system, enabling better credit access for small and medium enterprises. In the present economic climate, such steps are essential for supporting working capital needs, and encouraging growth and job creation. For SMEs, which form the backbone of India’s economy, these monetary policy actions can catalyze recovery, foster resilience, and stimulate investment, innovation, and competitiveness across the sector.”
