Quote on RBI MPC by Mr. Umesh Revankar, Executive Vice Chairman, Shriram Finance
Below the Quote on RBI MPC by Mr. Umesh Revankar, Executive Vice Chairman, Shriram Finance
"The Monetary Policy Committee announcement reflects a well-calibrated and optimistic approach to India’s evolving economic landscape. The decision to reduce interest rates is encouraging, especially as it comes on the back of strengthening macroeconomic indicators, early signs of a sectoral revival, and a promising monsoon forecast expected to lift agricultural output and rural consumption. Together, these factors point to a broader recovery in the economy. At the same time, the MPC's shift from 'accommodative' to 'neutral' stance indicates a measured and prudent outlook by the RBI, especially in an environment where domestic demand remains robust and several key sectors are showing resilience.
For consumers, lower interest rates will ease borrowing costs, reduce EMIs, and improve access to credit. This is likely to have a direct impact on consumer confidence and spending. For NBFCs that operate extensively in tier 2 & tier 3 towns, this policy move opens up new momentum for credit-led expansion. The broader implication of this rate cut cycle is significant as it reflects a forward-looking strategy that is aligned with India’s vision for inclusive and sustained growth. As highlighted by the RBI Governor, this brings the country a step closer to the goal of Viksit Bharat 2047. With rural resilience and continued expansion in services, both urban and rural consumption are poised to become strong drivers of India’s next growth phase."
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