“Reserve Bank of India’s decision to leave rates unchanged is prudent and thoughtful, and brings medium term positives. The RBI has rightfully kept the stance accommodative and ready for response, and has resisted knee-jerk policy actions.
This is pragmatic, and keeps the market primed for rate cuts in 2017, environment withstanding. The CRR roll back restores locked liquidity, which is also positive. It is comforting to note that the MPC vote was unanimous in the policy stance.”
The author, Anand Natarajan is Head of Strategy & Business Execution of Fullerton India Credit Company Limited.