RBI MPC Reaction: Dhawal Dalal, President & CIO-Fixed Income, Edelweiss MF

7 Feb 2025 , 11:57 AM

As widely expected, the MPC has cut the Repo Rate by 25 bp to 6.25%. However, there was no forward guidance on policy rates. The stance is maintained at neutral. The RBI Governor has promised liquidity support as and when needed. That probably means the banking system liquidity will be proactively managed in Q4FY25.