RBI rate pause shows growth confidence, says Essar Capital

New Delhi: Essar Capital Operating Partner Srinivasan Vaidyanathan said the Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25 per cent while retaining a neutral policy stance underscores confidence in the economy’s ability to sustain growth momentum.

He said recent trade developments, including the EU free trade agreement and progress toward a broad-based trade deal with the United States, have strengthened the economic outlook. With growth remaining robust and inflation well within the RBI’s target band, Vaidyanathan described the pause in rates after a cycle of easing as a prudent policy step.

According to him, policy continuity provides stability for businesses, investors and financial markets, while preserving the central bank’s flexibility to respond to evolving domestic and global conditions. He added that a predictable interest rate environment improves visibility for long-term investors and supports disciplined capital

allocation.