RBI MPC Announcement Reaction by Industry Leaders.

Mr. Y. Viswanatha Gowd, MD & CEO of LIC Housing Finance.

“Keeping the interest rates steady at 6.5% is in line with the expectations. We expect the same state to continue for a few more quarters. Looking to the lead indicators, it gives optimism and shows demand revival.  Monsoon prediction is yet another favorable point.  For home buyers, stable interest rate is an encouraging trend.”

Mr. Raghvendra Nath, Managing Director – Ladderup Wealth Management Private Limited

“On expected lines, RBI continued with its decision to not hike rates further as the inflation stays within range. The RBI has forecast the inflation for FY24 at 5.1%, inching towards the upper limit, however in the near-term inflation outlook looks more favourable. The progress of monsoon would be keenly watched and would be one of the significant factors in deciding the direction of inflation. RBI mentioned that average liquidity is in surplus mode and is expected to inch up. We believe this should result in some kind of moderation in the 10-year G-Sec yield.”

Jayaprakash, Chief Growth Officer, Jiraaf

RBI’s decision to leave repo rates unchanged at 6.50% was expected as we have seen significant reduction in inflation over the past several months. Jiraaf sees this decision positively given it will support the economic growth of the country, and spur affordable and accessible credit to end customers. The cost of borrowing had been increasing for quite some time making it expensive for individuals to finance for home, auto or personal needs. Similarly, it challenged SME and MME sectors to borrow debt at affordable cost to invest in their operations. This action by RBI would be a welcome move for both individuals and corporations.


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