Mr. Shachindra Nath – Vice Chairman and Managing Director on RBI Monetary Policy

“With central banks worldwide increasing policy rates because of the global inflationary triggers, RBI’s move to raise the repo rate by 50 bps is par for the course. It is a reasonable approach and a more aggressive hike would have triggered economic instability. Predictably, the RBI has withdrawn its ‘accommodative’ stance and is moving cautiously. The Indian economy, although not immune to global shocks completely, has shown resilience and is predicted to continue doing so. While inflation is still a worry, there are positives in terms of robust rural demand, agricultural productivity and a stable manufacturing level. Clearly, where alarm bells are ringing for other economies, India can afford to wait and watch. The RBI, as the Governor said, has rightly adopted a strategy of being ‘wakeful, vigilant and striving’.”

Mr. Murali Ramakrishnan, MD &CEO, South Indian Bank on RBI Monetary Policy

“RBI’s monetary policy is a well-timed and calibrated one, drawn on expected lines to buffer the current challenges of turmoil in global financial markets that has affected economies worldwide. The revision in the repo rate by 50 basis points (5.9%) and SDF to (5.65%) are much needed measures to rope in the concern of inflation. The Indian economy has remained resilient in spite of global headwinds in an environment wherein recessionary fears are mounting and inflation is high; projected growth though revised will be understandably muted given global economic factors. However, the domestic growth, we trust, will continue to show positive trend and will pick up in FY24.”