‘MPC’s decision reflects RBI’s commitment to support growth’

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Zareen Darwala, Group Chief Executive Officer, India and South Asia, Standard Chartered Bank

The MPC’s decision reflects continuity in its gradual approach and underscores its commitment to supporting growth as well as reining in inflation to target levels. The RBI’s positive outlook on growth, inflation trajectory and other macro fundamentals bodes well for the economy. This is also reflected in the stability of the rupee and long-term fixed rates. Rationalization of the licensing framework for persons authorized under FEMA should facilitate access to India for foreign companies and individuals.

Murali Ramakrishnan, Managing Director and Chief Executive Officer, Bank of South India

The MPC’s earlier rate hike allowed room to keep the repurchase rate unchanged at 6.5 percent for the current cycle. However, inflation remains a concern and is expected to remain above target levels through FY24.

AK Goel, Chairman of IBA, Managing Director and CEO of Punjab National Bank

The Reserve Bank of India (RBI) has not let up its guard on the inflation front. The decision to keep the signal rate unchanged is also to assess the full impact of the 250 bps GPA hike which is still working its way to contain inflation within its comfort zone. The RBI forecast on the growth front is quite optimistic at 6.5 percent for FY24 as a whole. This indicates favorable conditions for the growth impulses of the economy despite some negative external factors.

Dinesh Khara, Chairman, State Bank of India

RBI’s communications were accurate and designed to solidify market expectations for the future in terms of the permanent path of inflation. The package of policy changes on the development front covers a broad scope and prioritizes resolution, risk management, digital innovation, and addresses issues related to market microstructure. Overall, the policy is an apt statement against the backdrop of a global economy still mired in growth-related uncertainty and labor market rigidity.

Ashu Khallar, CEO, Citi India

The RBI’s message of strengthening domestic macro fundamentals in a challenging global environment will be reassuring to companies and investors. Focusing on sliding inflation to its medium-term target at stable rates would improve India’s overall stability and growth prospects.