By Sunil Kumar Batra
New Delhi, Oct 1 (BVI) The industry today said it was encouraging to see upward revision of India’s growth outlook from 6.5% to 6.8% for 2025-26 by the RBI but it expects the Central Bank to cut key policy rate in the coming months to support further growth.
Commenting on the monetary policy statement released by the RBI today, FICCI President Harsha Vardhan Agarwal said, “FICCI is encouraged by RBI’s upward revision of India’s growth outlook from 6.5% to 6.8% for FY 2025-26, reflecting the underlying resilience of the economy and the positive impact of recent policy initiatives, particularly the rationalization of GST.”
He also welcomed the additional measures announced by the RBI to strengthen the banking system, enhance credit flows, improve the ease of doing business for exporters, and advance the internationalisation of the Rupee.
“These are timely and forward-looking and will give a further boost to business confidence,” he said
“As we look forward to accelerating the growth momentum, we remain confident that the RBI will continue to support growth with timely measures, including a potential cut in repo rate in the next policy statement,” added Agarwal.
Srinivasan Vaidyanathan, Operating Partner, Essar Capital, said “Amidst a major demand push by reduction in the GST rates, the RBI has adopted a cautious approach of holding the repo rate at 5.5 percent. It will also help navigate the global uncertainties and choppy waters. With low inflation and steady policies, corporates can plan their finances carefully and invest wisely. While this stance provides short-term stability, it highlights the necessity for more assertive policy measures to invigorate demand and investment, ensuring sustainable economic growth.”
Aamar Deo Singh, Sr. Vice President – Research, Angel One, said “The Reserve Bank of India’s Monetary Policy Committee (MPC) unanimously kept policy rates unchanged, maintaining a ‘Neutral’ stance, with the repo rate steady at 5.5%. This marks the second straight pause after a cumulative 100 bps cut earlier this year. Notably, the RBI revised India’s FY26 GDP growth outlook upward to 6.8%, while trimming the FY26 CPI forecast to 2.6% from 3.1%. Overall, the policy signals a supportive backdrop for markets in the medium term.”
Anurag Mittal, Head of Fixed Income at UTI AMC, hailed RBI’s decision as “best hope” for the bond market while hoping that the Bank will cut rates in the future.
“RBI acknowledged the considerable change of inflation expectations and emerging policy space to cut further. We believe RBI can cut policy rates by 25-50 bps in the upcoming policies depending on growth inflation dynamics. Given the easy liquidity and possibility of further rate cuts, we believe the short to medium end of the yield curve remains best placed.“
Rishi Anand, MD & CEO, Aadhar Housing Finance, said the RBI’s decision to maintain the repo rate at 5.5% reinforces stability at a time when India’s macroeconomic landscape is evolving rapidly. With inflation coming down to 2.6% and growth revised up to 6.8%, the outlook is positive for both borrowers and lenders. For the affordable housing sector, this provides a dual advantage, with credit costs remaining stable even as household purchasing power strengthens amid moderate inflation and lower GST rates on essential commodities.
A neutral policy stance, combined with structural reforms such as GST simplification and ongoing government initiatives like PMAY 2.0, will further expand credit penetration and improve housing affordability across Bharat. (BVI)
