IANS NEW delhi

Leading banks on Wednesday said that the RBI rate cut, coupled with the revision in stance to accommodative, is a swift and timely move and a forward guidance to the market to stay supportive against evolving global uncertainties, along with empowering the consumers. 

The rate cut is likely to spur demand for home, auto, and personal loans, especially in tier 2 and tier 3 markets, where interest sensitivity is higher, said Binod Kumar, MD and CEO, Indian Bank.

According to C.S. Setty, Chairman of the SBI, the revision of stance to accommodation will cushion the secondary impact of tariffs on the domestic economy. "With inflation under check, growth imperatives will take precedence in FY26," he said.

According to Kumar, the change in stance to accommodative is sentimentally positive, allowing room for better liquidity and growth.

"Together, they will support both MSME and retail demand. The MSME sector, which contributes nearly 30 per cent to India's GDP and accounts for over 40 per cent of exports, will benefit from this move as it will ease credit costs and improve cash flows, which are critical for recovery and growth in the evolving market dynamics," he said.