Easing inflation, the manifest need to shore up economic growth and the evolving growth inflation trade-off necessitated 25 bps in the Repo Rate to 6 % on top of the 25 bps cut in February 2025. As a consequence of this measure, all external benchmark lending rates would fall by 25 basis points, thereby providing welcome relief to borrowers in interest rate-sensitive segments, such as housing loans, auto loans, education loans, and other personal loans. In a future guidance measure, the Monetary Policy stance was shifted from “neutral” to “accommodative”. This was an unmistakable indication of further reductions in the Repo Rate. To my mind, we see a Repo Rate reduction of 75-100 bps in FY 26. Given the evolving macroeconomic growth and inflation trajectories, the growth and inflation projections were tempered as anticipated by us.