RBI's rate cut, monetary stance change to 'accommodative' timely: Experts

The RBI decision to reduce the key interest rate by 25 bps and revise its monetary stance to 'accommodative' is a timely move and will cushion the secondary impact of tariffs on domestic economy, industry players said.

Industry players, including banks, NBFCs, and realtors, also said that the Reserve Bank's latest monetary policy augurs well for the economy amid global trade uncertainties.

SBI Chairman C S Setty said the RBI rate cut 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.

"On the regulation side, the market-based securitization framework for stressed assets, review of policy on gold lending and non-fund-based facilities are timely. Widening of the co-lending framework gives wider choices to all parties concerned," Setty said.

The Reserve Bank of India (RBI) cut the repurchase or repo rate by 25 basis points to 6 per cent.

Aditi Nayar, chief economist, ICRA said the 25 bps cut in the repo rate was along expected lines, given the recent evolution of growth inflation dynamics.

"Given the burgeoning global uncertainty, the reduction in the MPC's FY2026 forecasts for both the CPI inflation and GDP growth by 20 bps each and the change in stance to accommodative, amidst the clarity that it signals the future rate and not liquidity trajectory, we now expect an additional 50 bps of rate cuts over the next 3 policy reviews," she said.

RBI changed its policy stance to "accommodative" from "neutral", indicating the possibility of more rate cuts in future, Governor Sanjay Malhotra said while announcing the MPC decisions.

Commenting on the April credit policy, D K Srivastava, chief policy advisor, EY India said the RBI MPC meeting outcome signals its willingness to safeguard India's GDP growth prospects, ensuring that it does not fall below 6.5 per cent in spite of the ongoing global tariff turmoil.

V P Nandakumar, managing director and CEO of Manappuram Finance said "Credit-starved sectors such as MSMEs, housing, and renewable energy are expected to benefit from this monetary easing.

Moreover, an overall improvement in liquidity, business sentiment, credit availability, and economic activity will lift gold loan demand, as it remains a major source of short-term funding for consumption, Nandakumar said.

Expressing his opinion, Mandar Pitale, head treasury, SBM Bank India said an accommodative stance entails easy monetary policy that is geared towards stimulating the economy through softer interest rates.

Pitale expects the regulator to provide sufficient durable liquidity as we move ahead in FY26 for an effective and efficient transmission of the rate cuts to wider sections of the economy.

Shikhar Aggarwal, chairman, BLS E-Services said the reduction in repo rate is anticipated to significantly boost liquidity in the financial system, particularly aiding banks with lower loan-to-deposit ratios.

Raoul Kapoor, co-CEO, Andromeda Sales and Distribution said "lowering the repo rate effectively brings down cost of capital for banks and housing finance companies, translating into cheaper home loans for borrowers. This makes home ownership more affordable, especially for first-time buyers and middle-class households."  Rohit Arora, CEO and co-founder, Biz2Credit and Biz2X said the RBI's latest rate cut, coupled with a shift to an accommodative stance, offers timely tailwinds for credit growth, particularly for India's MSME sector.

Anantharam Varayur, co-founder, Manasum Senior Living said the monetary policy is a positive development for the real estate industry, especially for senior living projects.