This is a very progressive step and a sound balance between stimulating growth and yet being cautious for curbing retail inflation post what is expected to be a bad monsoon.
Food prices are expected to rise post monsoon, and oil is now $ 60 + despite reports from leading experts predicting oil prices to be sub $ 50.
I hope the banks and financial institutions now pass on the substantial reduction in rates over the last 6-9 months to end customers and also to the Corporate Sector. Unless this happens, consumption will remain subdued and consequently the investment cycle will not pick up.
The author is Rohit Poddar, Managing Director, Poddar Developers.