The minutes of the fifty-eighth meeting of the Monetary Policy Committee (MPC) of Reserve Bank of India released on Friday offers interesting insights into what led to the unanimous decision earlier this month to reduce repo rate by 25 basis point to 5.25%.The Reserve Bank of India publishes the minutes on the fourteenth day after every meeting of the Monetary Policy Committee. A look at the statements made by the MPC members gives key insights into the domestic and global economic growth. Here are the key points from the statements made by some members of the MPC.
Key points from statement by Sanjay Malhotra, RBI Governor
* Global growth has remained resilient during the year but persisting risks from geopolitical and trade tensions, policy uncertainty and economic fragmentation continue to temper its outlook.
*Overall, real GDP (gross domestic product) growth is poised to exceed 7% in 2025-2026, much above our expectation of 6.5% at the beginning of the year, as healthy domestic prospects outweigh the concerns on the external front.
* In the first-half of next year (2026-2027), domestic growth is projected to remain strong, though moderate to 6.7-6.8%.
*Headline inflation for the full year (2025-26) is likely to be around 2%, half of what was projected at the beginning of the year. Headline inflation is projected to be close to the 4% target in the first-half of 2026-2027.
Key points from statement by Dr. Poonam Gupta, MPC Member and Deputy GovernorÂ
*Since the October policy, the global economy has held up well despite prevailing uncertainties. No new shocks have emerged on the global front. One could perhaps safely conclude that the global uncertainties have peaked.
* Inflation has been below the 4% target for the last nine months averaging 2.3% and is likely to remain well contained for at least nine more months. The average inflation for 2025-26 is projected to be 2%, down by 60 basis points from the October policy.
*Â One may ask whether the current rate cut, resulting in a cumulative rate cut of 125 basis points, could lead to overheating in the economy. However, not just headline and core inflations, but most other nominal indicators of the economy are prevailing at levels that indicate that the economy at this point is not showing any signs of overheating.Instead, one could interpret the data as indicating that there is slack in the economy.
Key points from statement by Prof. Ram SinghK, Director, Delhi School of Economics Â
* A rate cut can add to the pressure on the rupee. The Real EffectiveExchange Rate (REER) for rupee has fallen substantially due to foreign portfolio investors (FPIs) outflows triggered by global financial market uncertainty and less appealing price-earnings ratios for India.
*However, the economy’s fundamentals – balance of payment, forex, fiscal deficit, debt-to-GDPratio, corporate and bank balance sheets, inflation and growth dynamics – are all robust. Therefore, I expect exchange pressures and FPI flows to be self-limiting
Key points from statement by Saugata Bhattacharya, Economist
*Latest data suggests that rate cut transmission has been satisfactory and broad based across sectors. Given the RBI commitment to liquidity infusions, further transmission is also likely
*Bank credit offtake and the broader flow of resources to the commercial sector have been rising over the past few months, especially to both small and medium enterprises. This might be reflective of a moderate revival in private investment and a pick-up in economic activity.  A further cut in interest rates in the external benchmark lending rate segments of banks’ loan portfolios is likely to boost credit demand, particularly in the MSME segment.
Key points from statement by Dr. Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development, New Delhi
*There is some evidence that the geopolitical and trade-related uncertainties have started to hurt the business sentiment. The Trump tariffs are particularly affecting the labour-intensive industries such as textiles and garments, leather goods, gems and jewellery, processed food products like shrimp that have a higher exposure to the US market. These are also the sectors that are dominated by MSMEs and account for a disproportionately larger share (around 40%) of jobs in the manufacturing sector. Hence, the high tariffs imposed by the US on India have the prospect of affecting MSMEs and the jobs in a significant manner
*Too low an inflation rate is not healthy for a developing country like India, suggesting a demand deficit.
