Quote on Post-RBI MPC comment by Mr. Pankaj Sharma, CEO, Religare Finvest
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Below the Quote on Post-RBI MPC comment by Mr. Pankaj Sharma, CEO, Religare Finvest
The Reserve Bank of India's (RBI) stance of maintaining the repo rate at 6.50% demonstrates a nuanced approach to our current economic challenges. While we would have welcomed a rate cut, we understand the delicate balancing act of managing inflation against economic growth-we recognize the RBI's cautious approach.
The current economic indicators present a complex landscape. With inflation rates climbing to 6.2% - significantly above the RBI's 4% target - and our GDP growth decelerating to 5.4% in the second quarter, we're navigating turbulent economic waters. The modest Cash Reserve Ratio (CRR) reduction from 4.5% to 4% is a strategic move that will inject approximately Rs 1.16 lakh crore into our financial ecosystem. From our perspective as a financial services provider, this liquidity injection is crucial. It will enhance banks' lending capacities, creating more opportunities for businesses seeking capital.
We remain optimistic as a sector. The RBI's measured response suggests a commitment to long-term economic stability. The potential for sustained growth remains robust, and we continue to support and look forward to policies that balance inflation control with economic expansion. Thereby insulating and propelling India to its vision of becoming the third largest economy.
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