RBI MPC APRIL-2025 DECISION TO CUT REPO RATE BY 25 bps (0.25%) IS WELCOME IN NATIONAL INTEREST
Dear Readers,
The decision of RBI MPC ( Monetary Policy Committee) April-2025 announced today to cut repo rate by 25bps (0.25%) to reduce the existing repo rate from 6.25% to 6% is Welcome in National Interest.
This
is the second tranche of 25bps(0.25%) cut in Repo Rate of RBI while the
first tranche of 25bps (0.25%) cut was done by the current RBI MPC
under the New Governor Mr. Sanjay Malhotra ( who took over in December
2024) in February 2025, after a gap of 2-years while the Repo Rate of
6.5%, at such high level was being hold by RBI continuously since May
2023.
The
Highest Level of Repo Rate Regime is never good for the Economy, as the
High Cost of Capital hits the Economy in many ways, the Ordinary and
Common People get affected by their livelihood being burdened with
Higher Level of EMIs of basic loans they need for sustenance living and
while the Commerce and Industry also get affected by the High Cost of
Capital or the HIgher Interest Rate of Lending with Higher EMI burden.
It
is good that after a Gap of 2years (considered from May 2023), the
Current RBI MPC with the New Governor Mr. Sanjay Malholtra as the Chair,
has adopted the Rate Cut Cycle for easing the High Repo Rate Regime
that was existing from February 2025 MPC onwards and so far 0.5% has
been cut in Repo Rate of RBI in two tranches of 0.25% each.
It is Note Worthy that Government of India also took appropriate cognizance (to be acknowledged Respectfully) that the Nation needs a Repo Rate cut cycle to be initiated in the National Interest,
and acted with right decisions to replace the former RBI Governor and
Dy. Governor in charge of Monetary Policy successively in December 2024
and January 2025 respectively, the RBI MPC was also re-casted with 3-New
MPC External Members joining as per the normal change process and
procedure ( it is also a fact that Mr.
Jayanth Verma. Prof. IIMA and Ms. Ashima Goyal, Former Prof. IGIDR, the
Two Former External MPC Members then had set the motion of Repo Rate
Cut Cycle by their dissent then almost from October 2024 and even prior
to that continuously in favour of Repo Rate cut which could not come
into effect at that time due to 4-MPC Members (3-internal to RBI at that
time and 1-External) in Majority out of the 6-Membered MPC used to
Bulldoze illogically in favor of maintaining status quo with 6.5% Repo
Rate) and it is good and welcome
now that RBI MPC has embarked upon a Repo Rate Cut Cycle now, though it
is being done slowly and cautiously with small tranches of 25bps (0.25%)
per MPC-Meet in the last 2-occasions of MPC(includes the announcement
today) it is definitely welcome steps in the National Interest.
When
the common people who need borrowing for their livelihood continuity
and the Commerce and Industry who need a bit softer EMI capitals to
generate purchasing power and employment in the hands of people get
Softer EMI lending due to eased RBI Repo Rate that is definitely for the Good for the Economy and National Interest.
Harbouring
inflation fobia to stick to a Higher Repo Rate Regime as was being done
for almost 2-years prior to February 2025 is never good for the
Economy. Inflation is a bye-product of many other activities and
policies working in the economy including global activities, that should
never scare and create an inflation phobia to stick to a Higher
Interest Rate Regime in the Economy when looked at Macro Outlook for the
Good of our Economy.
I
am happy by my Opinion and Expertise as a Prominent Expert and
Professional of India by my merits that the Current MPC of RBI has at
least gone for 2-tranches of Repo Rate Cut @25bps (0.25%)
each
from February 2025 onwards, that will help the Common People, the Commerce and Industry and the Economy of India as a Whole.
Those who like can read further from the news link I am giving below or by their own choice from the public domain.
RBI MPC cuts repo rate by 25 bps to 6% amid market uncertainty, tariff turmoil; shifts to accommodative stance
It requires good courage to appreciate when good things are happening in National Interest with Nation First Motto, I am very clear about it without ambiguity.
With best regards,
Dr. Nimain Charan Biswal,
Mumbai, India
About the Author : Dr. Nimain Charan Biswal is a B.Sc.(Agri. Science and
Technology), M.B.A. and Ph.D.(Management Area ) by qualifications; and he has
39+ years of work experience in Social, both industrial and Development sectors
in diversified fields of Social Importance. He has been educated at Orissa
University of Agriculture and Technology (OUAT)-Bhubaneswar, Institute of Rural
Management Anand (IRMA) and Gujarat University (with Resource Support of
IIM-Ahmedabad). He is further educated at IIM-Calcutta, XLRI-Jamshedpur, Apple
Computer Industries and Spar Inc., USA. He has worked for reputed National and
International Organizations in Senior/Top Management Capacities at Board level
as well as Managing Director and CEO. He is a management expert covering
extensive areas from management in Social, industrial sectors, management in
Agriculture and Dairy, Development Management to management of public systems.
He is a prominent professional of India and known Internationally as well. He
is also a Political Strategist. He lives at Mumbai in India.
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