Reactions on Sixth Bi-Monthly Monetary Policy Statement, 2015-16
Author(s): City Air NewsMs Chanda Kochhar, MD and CEO, ICICI Bank, said, “The policy announcement today is line with market expectations. The RBI has rightly indicated that it would watch the growth trends, the fiscal approach to be articulated...
Ms Chanda Kochhar, MD and CEO, ICICI Bank, said, “The policy announcement today is line with market expectations. The RBI has rightly indicated that it would watch the growth trends, the fiscal approach to be articulated in the budget and the factors impacting inflation in the coming months. The policy statement is a comprehensive and well-balanced articulation of all these factors.”
Mr. Rana Kapoor, MD & CEO, YES BANK, said, “Although the RBI maintained monetary status quo, the accommodative bias continues. With CPI inflation poised to moderate to 5% levels by end FY17 and government committed towards spurring investment led growth and maintaining high quality fiscal consolidation, incremental room for monetary accommodation will open up post the announcement of FY17 Union Budget.
I expect the RBI to play a complementary role and lower rates by 75 bps in 2016.”
Mr. Umesh Revankar, MD, Shriram Transport Finance Company Limited said, “We were expecting a 25 bps cut this time around as the on ground realities on the economy front haven’t changed much. The economic bounce back is not as expected, while there is hardly any movement in investment cycle, not to forget the rural economy, which isn’t responding as well.
While we understand that the RBI is perhaps holding up for the front loading cuts to get transmitted in the system, more such cuts are still needed from the RBI. As this should trigger the banking system to start responding or else in this tug of war we could continue to see a status quo on the economy and the future growth prospects of India Inc.
Our sense says 25 – 50 bps rate cut over the next six months should provide some respite to retail borrowers, besides corporate India on the cost of funds and it may trigger them to start investments.”
Date:
Tuesday, February 2, 2016