“The RBI’s decision to cut the repo rate by 50 basis points to 5.50% and reduce the CRR by 100 basis points to 3% is a welcome and timely move. It signals a strong commitment to support growth, enhance liquidity, and make credit more accessible and affordable during a crucial phase of the economic recovery.
The shift in policy stance to ‘neutral’ reflects a prudent and balanced approach, with an eye on long-term stability. Importantly, the RBI’s confidence and continued liaising to strengthen the unsecured credit space is also a big boost for lenders. It encourages responsible lending while easing previous concerns in this segment.
These measures will lower the cost of funds and increase credit flow, especially for MSMEs, affordable housing borrowers, and underserved communities. Together, they pave the way for a more inclusive and resilient economic rebound for a sustainable growth.”