Mr. Venkatraman Venkateswaran, Group President & CFO of Federal Bank:
RBI surprised the market by continuing its “accommodative stance” and not increasing the reverse repo rate, which was widely expected. RBI continues to prioritise growth over inflation and at the same time acknowledging risk to inflation. They have adopted a cautious stance and to support recovery of the economy. The inflation projections appear optimistic given the rising oil prices and supply side constraints.
