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Below the Quote on RBI Monetary Policy by Mr. Rajendra Kumar Setia, MD & CEO, SK Finance Limited

The policy reflects a clear intent to support inflation adjusted growth, with a continued focus on inflation

The RBI’s decision to reduce the repo rate by 25 bps to 6% in its first monetary policy of FY25-26, along with a shift in stance to ‘accommodative’ comes at a critical juncture and serves as a catalyst for supporting and accelerating credit momentum across the economy. 

The announcement reflects a clear intent to support inflation adjusted growth, with a continued focus on maintaining inflation to the earlier set target of 4%, supported in a sustained manner, by easing food prices. This creates an environment conducive for lending in the credit and banking ecosystem as the economy gears up for the next phase of growth. The reduction in the repo rate allows a faster credit growth helping lenders like us expand our services to support the underserved communities through responsible lending in rural and semi urban India where we largely operate.

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