Mr. V.P. Nandakumar, Chairman and Managing Director, Manappuram Finance.
“The RBI MPC’s decision to keep the policy repo rate unchanged at 5.25% while maintaining a neutral stance is largely on expected lines and reflects a cautious, data-dependent approach amid heightened global uncertainties, particularly ongoing tensions in West Asia.
While domestic macroeconomic fundamentals remain resilient, the MPC has rightly highlighted emerging upside risks to inflation, driven by potential increases in crude oil and other commodity prices, along with possible supply-side disruptions. Although headline inflation remains within the target range at present, the evolving global environment warrants continued vigilance.
The policy stance provides stability while allowing flexibility to respond to changing growth-inflation dynamics. Additionally, the RBI’s continued focus on streamlining regulatory frameworks and improving ease of doing business is expected to support credit flow, enhance operational efficiency for financial institutions, and strengthen the broader financial ecosystem.
Measures aimed at facilitating MSME financing and broadening participation in financial markets are also likely to improve liquidity conditions and support sustained credit growth.”
