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Analysts are often expected to move between querying data, shaping it for analysis, and presenting results to business users. Interviewers ask this question to understand both your technical depth and your judgment about when to use each tool.
Explain which data analysis tools and software you are most comfortable with, with emphasis on PostgreSQL, Excel, and Power BI. You should describe what kinds of tasks you use each tool for, how they work together in your workflow, and where each one is stronger or weaker.
Keep your answer practical rather than listing software names. A strong response should show that you can write SQL to extract and aggregate data, use Excel for quick validation or ad hoc analysis, and use Power BI to build repeatable reporting for stakeholders. The interviewer is looking for clear tradeoff thinking, not a long catalog of tools.