The RBI’s decision to maintain the repo rate at 5.5% with a neutral stance is a measured move in light of global headwinds and evolving domestic dynamics. While headline inflation has moderated, risks from food price volatility and external shocks persist. Meanwhile, domestic growth remains resilient, and is well supported by robust service sector, steady consumer demands and improving rural activity. For the NBFC sector, continued surplus liquidity will support lending momentum, particularly in retail credit and gold loans. This policy stability will bolster business confidence, enabling sustained consumption, and growth.
George Alexander Muthoot, Managing Director, Muthoot Finance
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