By, Mr. Vinod Francis, GM & CFO, South Indian Bank.
“The RBI’s decision to trim the repo rate by 25 basis points while maintaining a neutral stance signals a calibrated shift towards supporting growth, without sending an overly aggressive easing signal to the markets. RBI’s communication is straight forward that the apex will do whatever it takes to support growth given the deflationary trend in the price gauge.”
“By combining a modest rate cut with a neutral stance, the MPC has tried to balance softening inflation with still-resilient growth. This in my view is necessitated by the weakening Rupee and narrowing interest rate spread between India and the US markets.”