Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara

The Reserve Bank of India (RBI) has changed its monetary policy stance to neutral to focus on trade and consumer confidence to get back to the central bank’s 4% inflation target without the inflation getting out of hand. The move includes cuts in the 50 bps repo rate and the slashing effect of February and April 25 bps cuts. We believe the repo rate would be further front-loading other monetary stimulus in 2025 with another cut of 100 bps to 5.5% with the emphasis on moving money and credit. The move will also require banks to know the full meaning of the cuts and being able to utilize those effectively.