File picture of SBI Chairman C.S. Setty
| Photo Credit: PTI
The RBI rate cut on Wednesday (April 9, 2025) that was coupled with the revision in stance to ‘accommodative’ was a swift, timely move and a forward guidance to the market to stay supportive against evolving global uncertainties, said State Bank of India Chairman C.S. Setty.
“The revision of stance to accommodation will cushion the secondary impact of tariffs on domestic economy. With inflation under check, growth imperatives will take precedence in FY26,” he said in his comment on the monetary policy announced on Wednesday.
Bharat Dhawan, Managing Partner, Forvis Mazars in India said, “The RBI’s rate cut is a timely step to keep the economy on track as global uncertainties rise. Banks are well-placed to lend more actively, and with inflation expected to ease further, consumers could feel more confident about big-ticket purchases.”
“Many sectors are going to benefit from the rate cut. With borrowing costs now slightly lower, homebuyers and developers could find more breathing room, giving a welcome push to the real estate sector,” he said.
Countering potential economic slowdown
Sunita Ramnathkar, Vice President, IMC Chamber of Commerce and Industry said, “The reduction of policy rates by 25 basis points is aimed to stimulate domestic demand and investment by making borrowing more affordable to counter potential economic slowdown due to reciprocal tariffs imposed by U.S.”
“The adjustment to the SDF and MSF are intended to enhance liquidity to support credit growth. IMC welcomes such well coordinated measures which are likely to counter global economic uncertainties, instil positive sentiment and balance Indian economy on even keel,” she said.
“The rate cut was anticipated and offers marginal support to real estate sentiment. But in a volatile global environment—with trade tensions resurfacing—the true impact will depend on how input costs and capital flows evolve over the next few months,” said Ashwinder R Singh, Chairman CII Committe on Real Estate & Vice Chairman, BCD Group.
“Heightened geoeconomic and geopolitical uncertainty triggered by the recent tariff announcements is bound to have some adverse spillover impact on growth, even though India would remain relatively insulated vis-à-vis some of the other countries. The display of sensitivity and alertness to these seismic global shifts by the RBI is comforting,” said Sanjay Agarwal, Founder, MD & CEO of AU Small Finance Bank.
Published – April 10, 2025 09:12 am IST
