New Delhi, April 8 (SocialNews.XYZ) The Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25 per cent will ensure sustainability of the ongoing recovery, ensure credit growth and keep borrowing costs stable, economists and bankers said on Wednesday.
The central bank's decision reflects a balanced and ‘safety-first’ approach, prioritising macroeconomic stability, said Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank, also lauding RBI’s continued focus on improving ease of doing business, especially for MSMEs.
The removal of due diligence requirements for onboarding onto the TReDS platform is a progressive step that will significantly enhance liquidity access and working capital efficiency for small businesses, he added.
The status quo factors in rising upside risks to inflation and provides much-needed stability to the financial system,” Vinod Francis, SGM & Chief Financial Officer, South Indian Bank.
A steady rate environment, supported by adequate liquidity, should continue to support credit growth across retail and MSME segments, while also strengthening asset-liability management for lenders, he added.
“The decision to maintain the status quo on rates was largely in line with expectations and signals the RBI’s continued effort to balance growth with inflation control," said Srinivasan Vaidyanathan, Operating Partner – Essar Capital.
"With the central bank also focused on preventing excessive weakness in the rupee amid global volatility, the move highlights a preference for macroeconomic stability and regulated policy action. While the pause may delay immediate relief on borrowing costs, policy consistency at this stage provides businesses and investors with greater visibility and confidence for long-term planning,” he added.
Tribhuwan Adhikari, MD & CEO of LIC Housing Finance found the unchanged rate regime positive as it preserved affordability for homebuyers, especially in the affordable and mid-income segments.
Dipti Deshpande, Principal Economist, Crisil Ltd, on today’s monetary policy, said that fiscal space to absorb part of the higher energy costs from the conflict has contained their impact on retail inflation so far.
Prashant Vasisht, Senior Vice President and Co-Group Head, Corporate Ratings, ICRA Limited said that crude and product flows may take months to normalize even after cease fire, but some supplies would start for crude oil and petroleum products like naphtha, LPG, thereby alleviating the immediate shortage.
—IANS
aar/pk
Source: IANS
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