BOB Report: RBI Rate Cut to Spur Growth Amid Cooling Inflation

Bank of Baroda's report says RBI's rate cut will boost growth, ease inflation, and support liquidity and credit flow.

- TBG NETWORK

The decision of the Reserve Bank of India (RBI) to slash the policy rate will boost growth amidst easing price pressures and infuse liquidity along with supporting credit flow, said a report by Bank of Baroda.

The BoB report added that the RBI's surprise 50 basis-point rate cut, along with a phased 100 basis-point reduction in the Cash Reserve Ratio (CRR), has signaled a strong pro-growth stance.

The announcements have been welcomed by markets and are expected to spur economic activity in the coming quarters. The Monetary Policy Committee (MPC) maintained its GDP growth forecast for FY26 at 6.5 per cent.