The RBI Policy has been very prudent and practical and as expected kept the repo rate unchanged. However, to address the liquidity issue the MPC has given a CRR cut of 50 bps which will infuse Rs 1.16 lakh crore. The deposit rates for banks should peak. Therefore, we could expect a better NIMs for the next quarter. The inflation has been revised higher to 4.8% and the GDP rate has been revised downwards to 6.2%, it is expected that the growth will improve in the Q4. The MPC has maintained a neutral stance. Therefore, the adverse inflation -GDP dynamics have kept the MPC on hold on interest rates which is for the best.
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