“The RBI‘s decision to maintain the repo rate at 5.25% while retaining a neutral stance reflects a prudent and forward-looking assessment of the evolving macroeconomic environment. Despite resilient domestic demand and an improved FY27 growth outlook, the MPC has rightly acknowledged that geopolitical developments, energy price volatility and global uncertainties continue to warrant vigilance on the inflation front. By maintaining policy continuity while preserving flexibility, the RBI has struck the right balance between supporting growth and safeguarding macroeconomic stability. With the policy rate remaining steady and domestic demand continuing to demonstrate resilience, NBFCs have greater visibility on funding costs and credit planning, creating a conducive environment for sustained disbursements. Stability at this stage of the rate cycle is positive for both lenders and borrowers, as it supports business confidence, encourages productive credit demand and enables timely access to formal finance for households, entrepreneurs and MSMEs. We believe this policy approach will continue to support sustained credit growth across the economy.”
– George Alexander Muthoot, Managing Director, Muthoot Finance