RBI springs surprise: Cuts rates even as growth soars, ~ wobbles

Shailesh Chandra, President, SIAM and Managing Director and CEO of Tata Motors Passenger Vehicles: “The monetary policy decisions are expected to boost consumer sentiment.

- 

Coupled with the income-tax relief measures announced in the Union Budget, and the landmark GST 2.0 reforms, the rate cut creates strong enablers for further enhancing affordability and accessibility.

Sukesh Bhowal, MD & CEO, Motilal Oswal Home Finance: “It's a very welcome move by the RBI and will significantly improve home purchase affordability. For affordable HFC s like us, a faster transmission of the repo rate cuts leading to reduced MCLR for banks will help us bring down our borrowing costs, thereby beneiting our lower income group customers.”

Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments: “The MPC decided to vote in favour of growth despite ongoing robust growth in the economy. The GDP growth forecast is positive for the market. Banks will like the policy decision overall but are unlikely to respond very positively to the rate cut since their NIMs will come under pressure and they will face difficulties in mobilising deposits if deposit rates are lowered.”