Sahil Lakshmanan, Chief Business Officer, CarePal Money

The RBI’s decision to cut the repo rate to 6.25% is a strategic move to stimulate economic growth while inflation remains under control. With the MPC noting that inflation is expected to moderate in FY26, this rate cut signals confidence in price stability, giving room for policy easing. For borrowers, lower EMIs on loans could improve affordability and boost consumption. However, the market response has been measured so far, with the Indian rupee remaining largely unchanged against the U.S. dollar. This suggests that global factors and liquidity conditions will play a crucial role in determining the long-term impact of this decision.

With the policy stance remaining ‘neutral,’ the RBI is maintaining flexibility, indicating that future rate actions will depend on economic data. The key focus now will be on how effectively banks transmit this cut and whether it translates into stronger credit demand and sustained economic momentum.

Ankur Maheshwari, CFO, Freo

The RBI’s decision to reduce the repo rate to 6.25% is a welcome move, especially as it’s the first cut post-pandemic. This decision has far-reaching benefits—lower borrowing costs will encourage more individuals to invest in homes, particularly those who were previously on the fence due to rising construction costs. Additionally, with tax relief measures announced in Budget 2025, people will have more disposable income, making access to credit easier. While borrowing becomes more affordable, attractive fixed deposit rates will continue to ensure that savers have secure and rewarding investment options. As a fintech, we see this as a balanced move that supports both borrowers and savers, fostering overall financial growth.