Inputs on RBI MPC Meeting by Mr. Rohit Arora, CEO & Co-Founder, Biz2X & Biz2Credit
Below the Inputs on RBI MPC Meeting by Mr. Rohit Arora, CEO & Co-Founder, Biz2X & Biz2Credit
“Today’s 25-basis-point repo cut to 5.25% , together with a clear commitment to durable liquidity via Rs.1 lakh crore of OMO purchases and, a three-year $5 billion USD/INR swap is a welcome, timely move to shore up growth while inflation remains subdued.
With headline and core inflation tracking lower than earlier projections and high growth witnessed in the first half, the monetary backdrop now meaningfully eases the cost of funds for banks. This should, over time, improve transmission for NBFCs and fintech lenders as well, though the historic stickiness of transmission to nonbank lenders means the gains may come gradually.
For MSMEs this combination of lower rates and durable liquidity can translate into affordable, more predictable credit. This is, however, crucial as they manage rising input costs and look to expand capacity.
Improved stability in the policy environment also supports the broader adoption of AI-driven underwriting across the ecosystem. This will, in turn, enabling faster, data-led credit decisions for more efficient, transparent and inclusive MSME lending across banks, NBFCs and fintech partners.”
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