RBI’s 25 bps Rate Cut and Easing Inflation Boost Credit Flow to MSMEs

RBI’s 25 bps Rate Cut and Easing Inflation Boost Credit Flow to MSMEs

By, Ms. Shilpa Bhatter, Chief Financial Officer,

“The RBI’s 25 bps rate cut to 5.25% and the sharply revised inflation outlook create a supportive environment for credit expansion. With headline CPI now projected at just 2% for FY26 and core inflation continuing to ease, the policy clearly signals confidence in domestic price stability. The liquidity measures through OMOs and the USD/INR swap will further soften funding conditions, which is positive for NBFCs and will enhance the flow of credit to MSMEs. The neutral stance gives the RBI flexibility to respond to incoming data while sustaining the growth momentum. Overall, this policy reinforces a healthy credit environment and strengthens the demand outlook across key MSME segments we serve.”

Neel Achary

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