Uday Kotak hails RBI's MPC decision to cut 50 bps repo rate, 100 bps CRR as ‘bold and strategic’

Veteran banker Uday Kotak has praised the latest monetary policy announcement, calling it a “bold and strategic” move by the central bank.

In a post on X (formerly Twitter), the Kotak Mahindra Bank founder highlighted key elements of the policy, including a 50 basis point rate cut, a 100 basis point reduction in the Cash Reserve Ratio (CRR), and a shift in the policy stance from ‘accommodative’ to ‘neutral’.

Describing it as a “nuanced combination of policy measures,” Kotak might be suggesting that the central bank’s approach balances the need for growth with macroeconomic stability.

Highlights of RBI's June 2025 monetary policy

Following are the highlights of the Reserve Bank's June monetary policy announced by Governor Sanjay Malhotra on Friday:

• Benchmark lending rate (repo) reduced by 50 bps to 6.5 pc
• Monetary policy stance changed from accommodative to neutral
• Cash Reserve Ratio cut by 100 bps, to infuse Rs 2.5 lakh cr liquidity in banking system
• Lowers retail inflation projection by 30 bps to 3.7 pc for FY26
• Outlook for inflation points towards benign prices across major constituents
• Retains GDP projection for FY26 at 6.5 pc
• CAD for FY26 expected to remain well within sustainable level
• Foreign exchange reserves dip to USD 691.5 bn (May 30) from USD 692.7 bn
• Next MPC meeting from Aug 4 to 6.