RBI Monetary Policy Review: Front Load Policies To Drive Domestic Growth: Dolat Capital

Notwithstanding the positive financial market spillovers, the RBI’s hypera ccommodative strategy, while aimed at reviving growth, faces skepticism due to structural headwinds and sustained procyclical fiscal tightening..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.The Reserve Bank of India’s policy measures since December 2024, including a 50 basis point repo rate cut to 5.50% and a 100 bp reduction in the Cash Reserve Ratio, signal a highly accommodative stance reminiscent of pandemic-era policies. The cumulative liquidity infusion, estimated at Rs 13.16 trillion (5.7% of bank deposits), underscores deep concerns about India’s growth outlook, despite the reported 7.4% GDP growth in Q4 FY25. The RBI’s frontloading of accommodative measures aims to stimulate household consumption and private capital expenditure (capex). However, the central bank has signaled limited scope for further easing, suggesting it has exhausted much of its monetary policy arsenal. This urgency reflects skepticism about the sustainability of recent growth figures and a need to counter persistent demand weakness, partly driven by global economic slowdown..Click on the attachment to read the full report:.Bharti Hexacom: Risk-Reward No Longer Attractive; Motilal Oswal Downgrades To Neutral.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

RBI Monetary Policy Review: Front Load Policies To Drive Domestic Growth: Dolat Capital

The MPC voted to reduce the policy repo rate by 50 bps from 6.00% to 5.50% to stimulate economic growth.

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