By – Mr. Rajesh Sharma, MD, Capri Global Capital Ltd, on RBI’s Monetary Policy Decision
“The RBI’s decision to cut the repo rate by 25 basis points to 6.25%, the first in nearly five years, is a positive move, perfectly aligned to the initiatives for higher growth and consumption, outlined in the recent Union Budget. By making credit more affordable, the move is expected to encourage businesses to make capex and increase the credit demand in the economy, thereby fuelling the overall momentum.
The ‘neutral stance’ shows the RBI’s preparedness and flexibility to respond to the emerging macro-economic environment, ensuring the broader financial stability. For NBFCs, a lower cost of borrowing translates to a greater capacity to support MSMEs, first-time homebuyers, and entrepreneurs—key drivers of the India’s growth story.
The reiterated commitment for a stronger digital security in banking and payments is highly commendable.”