Dear Sir,
RBI Monetary policy with Great caution and lot of expectations.
Apropos your editorial 'Unchanged Repo:a pause for expectation' (Oct3), the RBI's recent monetary policy keeping the policy rates unchanged is nothing but an admission of the positive and negative changes affecting the economy from the national and international dynamics seen in politics, economics, social and technology areas .While the national scenario offers political stability , favourable economic macro factors in terms of steady economic growth , benign inflationary expectations thanks to favourable Union Budget measures particularly in containing fiscal deficit despite attractive income tax concession and GST 2.0 rationalisation aiming at massive consumption demand to boost the economic growth, the international scenario unfortunately has been highly unpredictable thanks to the geopolitical economic and social scenario thanks to the uncertainties emanating from the USA policies basically having ripple effects on the economic front world over. All said the approach of the Reserve Bank to maintain neutral stance aiming at economic growth keeping the inflation expectation far below the minimum of 4.0% is a wonder facilitating the much needed credit growth innovative and growth oriented. The market sentiments have been kept in tune with the expectations and hope the economy continues to be in growth track as widely expected globally.
T.V.Gopalakrishnan
Bengaluru.
Modified version of this letter appeared in Deccan Herald dated 4th October 2025.)
