View on RBI announcement By Ajit Kabi, LKP Securities
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Below are View On RBI announcement By Ajit Kabi, Banking Analyst at LKP Securities
"RBI has raised the repo rate by 40bps with immediate effect and CRR by 50bps by 21st May 2022. The rate hike was much-anticipated factoring rise in food and general inflation. The rate hike is likely to shrink liquidity in the economy overall. As per as the banks are concerned the cost of funds is likely to increase so does the cost of deposits. It may translate into NIMs pressure. However, a quick increase in MCLR May control the NIMs squeeze"
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