Zarin Daruwala, Cluster CEO, India and South Asia, Standard Chartered Bank
The MPC’s decision reflects continuity in its approach of gradualism and reiterates its commitment to support growth as well as rein in inflation to target levels. RBI’s positive outlook on growth, inflation trajectory and other macro fundamental bode well for the economy. This is also reflected in a stable Rupee and steady long term rates. Rationalisation of the licensing framework for authorised persons under FEMA should ease access to India for foreign businesses and individuals.
Murali Ramakrishnan MD and CEO, South Indian Bank
MPC’s well-timed rate hikes earlier have allowed it the leeway to keep the repo rate unchanged at 6.5 per cent for the current cycle. Inflation, however, still remains a concern and is expected to remain above targeted levels right through FY24.
A K Goel, Chairman IBA, MD & CEO of Punjab National Bank
RBI has not let the guard down on the inflation front. The decision to keep the signal rate unchanged is also to assess the fuller impact of the cumulative rate hike of 250 bps which is still working its way to contain inflation within the comfort zone. RBI’s projection on the growth front is quite optimistic at 6.5 per cent for FY24 as a whole. This indicates favourable conditions for growth impulses for the economy despite some external negative factors.
Dinesh Khara, Chairman, State Bank of India
RBI’s communication was nuanced and tailored to anchor market expectations for the future in terms of a durable glide path of inflation. The bouquet of policy changes on the development front covers a wide spectrum and prioritizes resolution, risk management, and digital innovation, and addresses issues relating to market microstructure. Overall, the policy is an apt statement in the backdrop of a global economy that is still mired in growth-related uncertainties and labor market rigidities.
Ashu Khullar, CEO, Citi India
The RBI’s message of strengthening domestic macro fundamentals in a challenging global environment would be reassuring for businesses and investors. The focus on gliding inflation to its medium-term target with stable rates would further improve India’s macro stability and growth prospects.