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What RBI’s ‘Goldilocks’ Call Means for India’s Economy Now
RBI rates cut reflects strong growth and low inflation, enabling cheaper credit and market optimism.
The (RBI) trimmed the repo rate by 25 bps to 5.25%, citing a “rare Goldilocks period”, robust GDP growth near 8% and inflation cooled to just about 2.2%. The combination of strong demand and low price pressures provides room for cheaper credit, potentially boosting consumption, investment and equity markets.