Essar Capital Welcomes RBI’s Rate Pause, Highlights Rising Inflation and Global Risk Concerns

By:- Mr. Srinivasan Vaidyanathan, Operating Partner, Essar Capital

“The RBI’s decision to maintain the repo rate at 5.25% with a neutral stance is a balanced response to a genuinely challenging macro environment. The more telling signal lies in the central bank’s evident caution on inflation, against a backdrop of elevated crude prices and a weaker rupee. This suggests that while the RBI remains supportive of growth for now, it is increasingly vigilant about external risks, and future actions will depend heavily on how energy prices and currency dynamics evolve. For capital-intensive businesses, the steadiness on rates is welcome, preserving the predictability that underpins long-cycle investment.”

Dhanpat Nahata, Managing Partner, Essar Capital

“The RBI’s decision was largely in line with market expectations, but the upward revision in inflation forecasts serves as a reminder that risks have not disappeared. With global uncertainty and energy prices rising, markets are likely to remain sensitive to inflation and currency developments. The neutral policy stance offers stability for now, but enterprises will continue to assess how evolving global conditions impact growth, liquidity and overall market sentiment.”