Given the benign inflation in India and need for catalyzing growth to a higher trajectory, RBI would have been quite comfortable in cutting rates in both the meetings (October-December 2025), Vikas V Gupta, the CEO & Chief Investment Strategist at Omniscience Capital said in an interview to Moneycontrol.
However, he is of the view that cutting rates also has a negative impact on the INR, causing potential depreciation. With the INR already depreciating strongly against the USD, the RBI’s hands are a little bit tied in the near term, he said.
According to him, with negotiating tactics like the H1B visa fees etc., the India-US trade deal might take a little bit longer than expected. But if it happens there is likely to be a relief rally, he believes
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