RBI monetary policy reaction: Mr. Suresh Khatanhar, Deputy Managing Director, IDBI Bank

8 Jun 2023 , 01:33 PM

With inflation continuing to slide, the MPC’s decision to maintain a status quo on repo rates is on expected lines. Though the Indian economy continues to remain fairly resilient, the pause in the rate hike cycle augurs well as it would further help in arresting inflation, boosting investment and consumption sentiments. The lowering of the inflation projection for FY24 to 5.1% signals towards a higher GDP growth and credit offtake can be expected to be higher. However, RBIs readiness in taking quick decisions in case of any divergence from present expectations on the inflationary front calls for cautionary optimism across the board.