Calling it a big surprise, say it reflects the Central Bank’s confidence in the economy
CS Setty, Chairman at SBI & Chairman at IBA: “A 50-ps policy rate cut, a staggered 100 bps CRR cut and change of stance to neutral, RBI today’s monetary policy communication was action packed – innovative, out of the box and an unanticipated surprise. The MPC has broadly addressed any concerns on slowdown in growth on account of global uncertainties and fully capitalized on the softening domestic inflation to deliver a frontloaded rate cut, staggered durable liquidity injection yet conserving the space for future action. The policy is definitely positive for all sectors of the economy, particularly for banking and finance. In particular lower cost of borrowing will act as a counterbalance to any uncertainty.”
Statement by Anish Shah, Group CEO & MD, Mahindra Group“We welcome the Reserve Bank of India’s decision to reduce policy rates at a time when the Indian economy is poised for its next phase of growth. This move demonstrates the RBI’s confidence in the macroeconomic fundamentals and its proactive approach to supporting sustainable expansion. The rate cut will serve as a positive catalyst for consumption and investment, particularly in interest-sensitive sectors such as automobiles, housing, and MSMEs. It will also ease borrowing costs, improve liquidity, and further strengthen the momentum behind India’s infrastructure and manufacturing push.”
Sadaf Sadaf Sayeed, CEO, Muthoot Microfin“RBI monetary policy is 10/10, it has an all-round focus, maintaining growth momentum, by cutting rates by 50 bps, liquidity infusion by cutting CRR by 100 bps over the year and targeting inflation at 3.7%. “It is great to see both GOI fiscal policy and RBI monetary policy working in tandem to propel the Indian economy to a new growth trajectory. It augurs well for the industry and our country”
