By Dr. Amit Goenka, Chairman & MD of Effort Finance, on the RBI MPC announcement.
“The RBI stance of maintaining steady policy rates amidst an uncertain global backdrop helps keep the market sentiments steady. Despite the geopolitical disruption in West Asia with large volatility in crude prices, feeding into both inflation and the external account, India’s growth base has held its ground. The FY27 Union Budget has set aside ₹12.22 lakh crore for capital expenditure, keeping the push on infrastructure firmly in place. Credit flows towards non-food bank credit grew 14.3% year-on-year to end-February and lending to industry rose 13.5%, both pointing to real activity in the productive economy. A small rate cut can further bolster lending and accentuate capex cycle.
The RBI‘s own estimates, FY27 growth at 6.6% and inflation near 4.0%, describe a balanced or slow tapering in economy. For investors in infrastructure and other long-gestation assets, this signals a stable predictable growth. Steady rates and predictable liquidity are what allow capital to be committed to long projects”
