India’s Economic Survey 2025-26 commends the Reserve Bank of India’s (RBI) monetary policy under global uncertainty, stressing robust performance in the monetary and financial sectors during FY26.
In order to lessen the impact of global financial shocks, it highlights the necessity of creative domestic financing channels. Effective money and credit market operation is said to depend on the RBI’s proactive liquidity management and an open regulatory environment.
The study reports a fall in the repo rate in response to lowering inflation, leading to lower lending rates and greater credit flow, investment, and economic activity. Additionally, banks are making good use of released liquidity, which has improved broad money growth.
The formation of a Regulatory Review Cell reflects a move towards proactive governance in financial regulation.
