The report states that with the lending cost at the following trend, this rate-sensitive segment is likely to improve credit flow, low cost of credit and demand.
It says, “Banking, NBFC, real estate and automobiles are in good position to benefit from low borrowed costs.”
The report also noted that the Indian economy is entering phase marked by benign inflation and sufficient liquidity, creating a constant low-interest rate background. This decreasing money market rate and yield of 10 -year government bonds are already clear in significant softening.
The report states that the reduction in yield has increased the bond price and improved the prospects of compensation for fixed income investors.
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“The money market rate and bond yield are less trending, in which the yield of 10-year G-second yields already softened, increases bond prices and supports fixed-income returns.”
The report publishes that inflation is currently moving near the lower end of the Government Bank of India (RBI) of the target range of India. As the RBI maintained a neutral policy, the price has begun with the possibility of a further decline to the market.
This combination of declining inflation and active financial smoothness is viewed as auxiliary for both equity and bond markets.
The report suggests that these factors are simultaneously strengthening the medium-term macro outlook, making a positive background for investors and more boosting India’s economic growth.
On Friday, the RBI’s monetary policy committee reduced the repo rate by 50 basis points. These larger cuts mark the third consecutive decline in 2025, which is a total of 100 bps easier since February.
As a result, the Standing Deposit Facility (SDF) rate is.2.5 %, and the marginal standing facility (MSF) rate and bank rate are 75.7575 %.
The RBI has also reduced the CRR to 100 bps (below 4 percent) to increase the sustainable liquidity in the banking system.
The CRR cut will be implemented in stages starting September 6, October 1, November 1 and 29, 2025, and promoting bank credit capacity by November 2025, a liquidity of about 2.5 trillion is likely to be introduced.
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