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

6 Oct 2023 , 02:17 PM

The decision to keep interest rates unchanged is in line with expectations as inflation management has been on the right track with core inflation having come down by 140 basis points from its recent peak in January 2023. With GDP growth estimates remaining the same at 6.5% for FY 23-24 a linear growth across industries looks like a good possibility. On the liquidity front the withdrawal of the ICRR of 10% which impounded about Rs 1 lakh crore from the system will help boost consumer spending especially in the festive season. However, there is a need for cautious optimism around the maintenance of the status quo by the RBI, due to the looming global economic pressures.