Quote on Monetary Policy by Mr. Umesh Revankar, Executive Vice Chairman, Shriram Finance

“The Monetary Policy Committee’s (MPC) decision to pause rate hikes was expected. It aligns with the regulator’s optimistic expectations for the future and reflects the Indian economy’s resilience in navigating the inflation trajectory. The RBI’s steadfast approach instils hope, showcasing a readiness to adapt to forthcoming economic challenges.

Indian economic activity is on a robust growth trajectory, as suggested by the buoyant consumption and GDP figures. The positive momentum reflects the resilience displayed by the global economy. The expectation of a favourable monsoon forecast holds significant promise for sustained economic growth.

The RBI’s consistent reminders for financial vigilance testify to its foresight. Also, the additional measures announced today highlight the RBI’s dedication to improve accessibility for retail investors. The introduction of a mobile app granting direct access to the retail portal for Government Securities (G-Secs) represents a proactive stride towards democratising investment opportunities, empowering individuals to participate more enthusiastically in the financial markets.

As the RBI Governor rightly said, staying vigilant and patient for a little while longer will unlock the path to lasting success.”

Quote by Mr. Sanjay Sinha, Independent Director, Beacon Trusteeship Ltd.

RBI withholding the policy rate at the existing level of 6.5% as well the stance of policy – withdrawal of accommodation- is on the expected line particularly due to the retail inflation ( CPI) hovering above 5%. The likelihood of supply shocks arising out of increased spendings due to the general election kicking in is also seen as a threat to the price stability. Another factor which has weighed in is the ascendency in crude oil prices , which touched the highest levels a couple of days ago since October last, on concerns about supply disruptions. As India imports 85% of its crude oil requirements, increase in its prices has direct implications on price stability.

Quote on RBI Repo rate by Mr. Pratapsingh Nathani, chairman and MD at Beacon Trusteeship

On the momentous occasion of its 90th anniversary, the Reserve Bank of India (RBI) not only celebrates a legacy of facilitating India’s economic stability and development but also reasserts its dynamic and comprehensive approach as a central bank. Reflecting upon a history of adaptability and resilience, the RBI continues to solidify its role through the adept functioning of the Monetary Policy Committee (MPC). The MPC’s role has been pivotal in calibrating the policy repo rate which currently remains unchanged at 6.50%, a strategic decision aimed at balancing the imperatives of growth and inflation.

As India’s economy demonstrates robust momentum, the RBI’s policies have been influential in managing inflation dynamics, particularly in the realm of food prices, thereby ensuring overall price stability. Despite the ongoing global economic challenges, including geopolitical and trade tensions, India’s economic resilience shines through, underscored by the strength of its industrial and service sectors.

Within the broader context of the global economy, the RBI remains cautiously optimistic, acknowledging external uncertainties yet remaining vigilant in its commitment to inflation forecasting. This careful monitoring is crucial to keeping inflation within the targeted bounds. Looking ahead, the RBI projects a promising GDP growth of 7.0% for the fiscal year 2024-25, buoyed by investment and consumption patterns that signal the ongoing vitality and potential of the Indian economy. This positive outlook underscores the RBI’s multifaceted strategies for fostering sustained economic stability and growth.

Quote by Sowdamini Bhat, CEO, LoanXpress

The Reserve Bank of India (RBI) is marking its 90th year, a journey where it has played a key part in keeping India’s economy stable and growing. The RBI isn’t just any bank; it adapts to changing times and does a lot more to guide the economy. One of its main tasks, done by the Monetary Policy Committee (MPC), is to decide on the interest rate for banks, known as the policy repo rate. Right now, they’ve decided to keep it steady at 6.50%, trying to make sure the economy grows without prices going up too high.

India’s economy is doing well, pushing forward even when prices for things like food try to go up too quickly. Despite problems in the world economy, like disagreements between countries and issues with trade, India is standing strong, thanks to its industries and services. The RBI expects that in the coming year, the economy will grow by 7.0%, driven by people investing and spending. This growth is a big goal for the RBI as it continues to keep the economy on a stable path.

Monetary Policy Quote by K Paul Thomas, MD and CEO, ESAF Small Finance Bank

Though today’s policy decision by MPC throws no surprises, there are reasons for bank customers to cheer about. One, by holding the rates steady, the equated monthly instalment (EMI) of the customers will remain unchanged for the next couple of months. On the other hand, with credit growth remains buoyant, lenders are likely to hike rates on term deposits to garner fresh funds for on lending and that is good news for depositors

Monetary Policy quote by Mr. V. P. Nandakumar, MD & CEO at Manappuram Finance

“By maintaining status quo, the RBI’s interest rate panel sends out a clear message that any cut in rates or change in stance is not on its table till headline inflation returns to the median target of 4%. However, commentary on economic growth with GDP expansion pegged at 7% for the current fiscal is reassuring since that means credit expansion will continue its momentum and that bodes well for lenders like us”.