Quote on RBI MPC by Mr. Vinod Francis, General Manager, Chief Financial Officer, South Indian Bank

Below the Quote on RBI MPC by Mr. Vinod Francis, General Manager, Chief Financial Officer, South Indian Bank
A Cut Above With a Focus on Growth, Liquidity
The MPC’s decision to go for a deep cut in repo rate by 50 bps and slashing CRR to 3% in tranches will not only support economic growth but also improve the liquidity positions of the banks significantly. These steps will ensure durability of the nascent resurgence in the domestic demand led by private spending. The MPC’s pivot to neutral stance and dovish economic commentary and inflation projection leave enough policy space for the central bank to manage the rate corridor in tune with the evolving trends on the price front. The key learning from the policy is that the central bank is not leaving any stones unturned to ensure price stability at the same time doing everything it takes to support growth. With tariff uncertainty casting a long shadow over external demand (exports) RBI’s sharp focus on supporting domestic demand and enhancing the lending power of the banking sector underpins its policy path during the current easing cycle by addressing key concerns on both demand and supply sides.
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