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Economic Survey Praises RBI’s Monetary Policy Framework

Economic Survey Praises RBI’s Monetary Policy Framework

New Delhi, Jan 29 (IANS): India’s Economic Survey 2025-26 commends the Reserve Bank of India’s (RBI) monetary policy amidst global uncertainty, highlighting robust performance in the monetary and financial sectors during FY26.

It emphasizes the need for innovative domestic finance channels to mitigate global financial shocks. The RBI’s proactive liquidity management and a transparent regulatory framework are noted as essential for effective money and credit market functioning.

The survey reports a decrease in the repo rate in response to moderating inflation, leading to lower lending rates and increased credit flow, investment, and economic activity. Additionally, broad money growth has seen improvement, with banks effectively utilizing released liquidity.

The establishment of a Regulatory Review Cell underlines a shift toward proactive governance in financial regulation.

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