“The RBI’s decision to keep repo rate unchanged and continue with the neutral stance signals the central bank’s confidence in the growth and demand scenario of the economy while acknowledging the possible downside risk to economic growth due to the inflationary concerns due to the energy crisis and prospect of weaker monsoon. The measure to ease capital flow will also act as a cushion amid global uncertainty. Unchanged repo rate will translate into stability in the lending rate, which augurs well for the consumption-driven economy. In a way, RBI’s intent to support growth while balancing financial stability is expected to boost overall market sentiment. Given the fact that gold prices remaining elevated, customers today have greater borrowing capacity against the same asset, making gold-backed credit an increasingly practical financing option. The policy stability, hence, offers both lending institutions and borrowers the much-needed assurance.”