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Below the Quote on RBI Monetary Policy by Mr. P R Seshadari MD & CEO of South Indian Bank

“As expected, The MPC has decided to keep the repo rate unchanged at 6.5% and SDF rate at 6.25%, and MSF rate & Bank rate at 6.75% respectively.

The recommendations are consistent with the MPC’s calibrated measures to rein in sticky inflation. Through the MPC actions, RBI has managed to keep the Indian economy resilient, that has translated into a growth momentum in an unsettled and gloomy global backdrop. The MPC team’s foresight in prioritising inflation control by draining out excess liquidity through measured rate hikes and pauses is commendable. It has worked well, alongside supply-side measures taken by the government, to tame stubborn inflation. Along with the rate hikes, the MPC also announced some additional measures. It will start allowing reversal of liquidity facilities under the Marginal Standing Facility and the Standing Deposit Facility even during weekends and holidays for better fund management. Also, it plans to increase the transactions limit to Rs 5 lakh for UPI payments to hospitals and educational institutions. These steps will accelerate the digital India movement and improve ease of conducting financial transactions. We are confident that the MPC’s announcements will help India achieve the targeted growth figures and bring down inflation to 4%.”

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