“The policy review was more in line with everybody’s expectations, barring the surprise SLR cut by about 100 basis points. The rationale behind SLR cut would only mean that the RBI wants to ensure enough liquidity in the system.
While the RBI continues to remain focused on containing inflation, and inflation continuing to remain out of RBI’s comfort zone, it would be wishful to expect the RBI to cut rates so soon.
However, the RBI should analyse the risk reward tradeoff as time seems right to cut rates further, which will provide the much needed impetus to the economy and accelerate growth.”
George Alexander , Managing Director, Muthoot Finance Ltd