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Bank of Baroda Chief Economist Madan Sabnavis on RBI Policy
This story was originally published at 13:10 IST on 6 February 2026
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NEW DELHI - Madan Sabnavis, chief economist, Bank of Baroda, said the following on the Reserve Bank of India's sixth bi-monthly monetary policy for 2025-26 (Apr-Mar) detailed on Friday:
The policy has left repo rate unchanged at 5.25% as expected and hence the markets have been quite unaffected. Quite expectedly too there have been no forecasts made on GDP and inflation next year as the new series are expected this month. Interestingly, while there is assurance on liquidity supply by RBI, no measures have been announced which means that they will be announced need based.
Again, in line with the push given by the Budget to micro, small, and medium enterprses, the RBI has increased the limit for collateral-free loans to INR 2 million. Hence there seems to be steady follow-up action to the Budget announcements.
We may expect that the rate cycle has ended and 5.25% repo rate would stand for some time before any action is taken, which is more likely in upward direction if inflation turns out to be higher in future. End
Compiled by Krity Ambey
Filed by Tanima Banerjee
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