The 25 basis points rate cut is expected to boost demand for home, auto, and personal loans, particularly in tier 2 and tier 3 markets, where borrowers are more sensitive to interest rates, said Binod Kumar, MD and CEO of Indian Bank. With retail loans having grown over 18 percent year-on-year, a lower interest rate environment could further drive consumption and strengthen economic momentum.
I recognise that there exists space for future rate cuts if the inflation evolves in line with our expectations. This space needs to be used judiciously to support recovery in growth, says RBI Governor
