By Ajitabh Bharti, Executive Director and Co–founder of CapitalXB:
“RBI’s April pause at 5.25% reflects the delicate balance between domestic growth momentum and external shocks.” With inflation at 3.2% and the rupee under pressure from oil spikes and global volatility, the neutral stance is pragmatic—it buys time for fiscal stimulus to work without risking imported inflation. The real test will be transmission: will banks pass through the prior 125bps cuts to boost credit growth? That’s where the rubber meets the road.”
