RBI boosts M&As, neighbourhood trade
The Tribune Editorial: The RBI has once again opted for continuity over change, keeping the repo rate steady at 5.5 per cent and maintaining a “neutral” stance.
THE Reserve Bank of India’s latest monetary policy is more than just a statement on interest rates; it is a nudge towards deeper regional finance. By allowing banks to fund mergers and acquisitions (M&As) and to lend in rupees to residents of neighbouring countries, the RBI is taking a quiet but significant step towards financial deepening and regional integration. For businesses hungry for capital and for India’s broader economic ambitions, these reforms are as consequential as the repo rate itself. Easing access to financing for corporate consolidation and cross-border trade signals a maturing financial system and a more connected regional economy.