Nifty99000 100%

Sensex99000 100%

Article rating: 4.3
Article rating: No rating
Article rating: 2.0
Article rating: 1.5
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating


India Inc cheers RBI’s status-quo on lending rate

Author: IANS/Friday, April 6, 2018/Categories: Government

India Inc cheers RBI’s status-quo on lending rate

New Delhi, April 5 - India Inc welcomed the Reserve Bank of India's downward revision of inflation rate in its first monetary policy review of 2018-19, which kept short-term lending rate unchanged, calling it "expected".

The RBI on April 5 maintained the status quo on its key short-term lending rate at 6%, along with its 'neutral' stance, at the first bi-monthly monetary policy review of the new fiscal.

According to a RBI monetary policy statement, the central bank lowered its inflation forecast for the first-half of the current fiscal to between 4.7% and 5.1% , and 4.4% for the second-half, "including the HRA impact for central government employees, with risks tilted to the upside". 

This is what the industry players and analysts had to say:

Sandeep Jajodia, Assocham President, said: "The RBI has rightly flagged certain issues like the impact of MSP (Minimum Support Price) revision on the prices and possible fiscal slippages at both the Centre and the states."

"RBI's Monetary Policy Committee to keep the benchmark lending rates unchanged is on the 'expected' lines," Assocham said, due to the concerns "regarding upside risks to inflation arising from possible fiscal slippages, volatility in crude prices and revised formula for the MSP for kharif crops".

Rajnish Kumar, State Bank of India Chairman, said: "More than the RBI decision to keep rates unchanged, the tone of the policy is a pleasant surprise for the market. The decision to revise downwards the inflation projections and upwards the growth numbers is the best one could have asked for."

Chanda Kochhar, ICICI Bank MD and CEO, said: "The significant positive in the monetary policy was the downward revision of inflation projections. The MPC has prudently voiced concerns about the possible interplay of domestic and global risk factors that could play out over the medium term."

Anis Chakravarty, Deloitte India Lead Economist and Partner, said: "On anticipated lines, the Monetary Policy Committee (MPC)... kept the policy rate steady on domestic and global cues."

Although there are upside risks to inflation "the policy has speculated food price inflation to remain within comfortable range and is likely to ease inflationary pressures to some extent". 

Rajesh Shah, Ficci President, said: "While the Reserve Bank of India has maintained status quo in current monetary policy statement, we hope that RBI will soon consider cut in policy rate and give a further boost to demand and investments."

FICCI hopes that going forward RBI will adopt an accommodative stance and thereby give a boost to demand and investments. This is critical for transcending to higher growth trajectory as well as to create more job and work opportunities.

Print Rate this article:
No rating

Number of views (146)/Comments (0)

Kavita Giridhar Mallya


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free