–Sarbvir Singh, Joint Group CEO, PB Fintech
“The RBI’s decision to hold the repo rate at 5.25% reflects a clear recognition that today’s inflation pressures are being driven primarily by global supply-side shocks rather than overheating domestic demand. With energy prices remaining volatile, higher interest rates would have done little to ease inflation while risking a slowdown in credit demand and consumption.
For fintech lenders, rate stability is particularly important because it preserves affordability for everyday borrowers — salaried professionals, self-employed individuals and small businesses that are highly sensitive to changes in monthly repayment obligations. Across the ecosystem, we continue to see healthy demand for productive credit, but customers are also becoming more conscious of borrowing costs and financial discipline.
The RBI’s stance strikes an appropriate balance between protecting growth and maintaining vigilance on inflation. By avoiding a premature tightening cycle, it has provided households and businesses with greater certainty while retaining sufficient policy flexibility should global risks intensify.”