Geojit Investments chief strategist Vijayakumar on RBI Policy
This story was originally published at 11:08 IST on 5 December 2025
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MUMBAI – V.K. Vijayakumar, chief investment strategist, Geojit Investments Ltd., said the following on the Reserve Bank of India's fifth bi-monthly monetary policy statement for 2025-26 (Apr-Mar) detailed on Friday:
The MPC (Monetary Policy Committee) decided to vote in favour of growth despite ongoing robust growth in the economy. The unanimous nature of the decision in cutting rates by 25 bp (basis points) reflects the consensus in the MPC that giving further boost to growth is a risk worth taking even in the context of depreciating rupee.
The projection of 7.3% GDP growth for FY26 is positive for the market. Banks will like the policy decision overall but are unlikely to respond very positively to the rate cut since their NIMs (net interest margins) will come under pressure and they will face difficulties in mobilising deposits if deposit rates are lowered. However, rate sensitives like autos and real estate stand to gain from the rate cut. End
Compiled by Anjana Therese Antony
Filed by Ashish Shirke
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