Thank you for joining over coverage of the RBI Monetary Policy. We will now wrap the blog.
With the dollar strengthening and to defend the rupee also I think the interest rate hike is something could be possible: Zarin Daruwala
The tone was much more hawkish than expected. Some statements that suggest that we are still worried of core inflation. The non-farm payroll data of US has also surprised a lot of people. And with the dollar strengthening and to defend the rupee also I think the interest rate hike is something could be possible, said Zarin Daruwala of Standard Chartered
Policy was a little hawkish than market would have expected: Uday Kotak
"Policy was on expected lines, but probably the feeling was that it was a little more hawkish than what the market would have expected. Follows the US Fed Chair's interview last night, which again was a little more hawkish than what market expected," said Uday Kotak.
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Policy is focused more on managing inflation: IBA
"Repo hike of 25 bps is on the expected lines. Evidently, the policy is focused more on managing inflation, even though the recent retail inflation readings are showing signs of moderation. RBI has given considerable emphasis on high core inflation pressures and assumes it as a major risk to the growth outlook. RBI expects the GDP for FY24 to be 6.4 per cent which is better than growth numbers of several leading economies," said AK Goel, Chairman of Indian Banks’ Association
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Our borrowing cost may rise slightly but we are confident of maintaining our margins at the current levels: Muthoot Finance
"RBI measures to expand the scope of TReDS will improve the cash flows to MSMEs, this coupled with recent announcement in the budget towards the MSMEs will surely give support to MSME sector which were most impacted during the pandemic. We do believe that the large part of the RBI rate hike cycle is behind us, unless inflation flares up unexpectedly. Our borrowing cost may rise slightly going ahead but we are confident of maintaining our margins at the current levels," said George Alexander Muthoot, MD, Muthoot Finance
MPC remained committed to targeting inflation: Kotak Mahindra Bank
“The MPC remained committed to targeting inflation while continuing with a stance of withdrawal of accommodation. RBI has committed to ensure liquidity to support estimated growth. The MPC expects growth at 6.4 percent in FY24, higher than the average market expectations and inflation at 5.3 percent. Thus, a nominal GDP of 11.7 percent. This should make India one of the resilient economies next year as well. Surprisingly inflation projection is higher than the targeted benchmark every quarter of next fiscal," Shanti Ekambaram, Whole-time Director, Kotak Mahindra Bank on RBI Monetary Policy.
If inflation continues to soften, PMC will likely feel more comfortable moving into a long pause next quarter: Bandhan Bank
“The MPC’s decision to hike the repo rate by another 25 basis points to 6.50 percent was in line with market expectation. It was a close call in the current round to choose between a pause and a 25 basis point hike, as reflected in the MPC voting pattern with two of the six member committee voting for a pause. While the voting pattern turned more diverse than usual, it is clear that the MPC’s action will be more dependent on data – both domestic and global – in the coming months. The RBI will likely stay in search of more decisive signs of a sustained disinflation in the coming months. On the other hand, if inflation indeed continues to soften in line with the RBI’s current expectation, the MPC will likely feel more comfortable moving into a long pause in the next quarter,” said Siddhartha Sanyal, Chief Economist & Head Research, Bandhan Bank.
RBI rate hike in line with market expectations: Indian Bank
“Considering domestic inflation outlook, growth prospect of the economy and emerging global scenario, RBI has decided to hike the policy rates by 25 bps. The outcome is in line with the market expectations and gives confidence on the RBI’s efforts to keep the economy resilient, support growth during the present global uncertainties & to control the inflation," said Shanti Lal Jain, the MD & CEO of Indian Bank.
Repo rate hike is in line with expectations: FICCI
"The 25 bps hike in policy repo rate by the Reserve Bank of India (RBI) is in line with expectations. While the inflation trajectory over the course of next year is expected to be below 6 percent and will be somewhat of a reprieve, there is an upside risk on account of geopolitical factors. Hence, the RBI is expected to remain cautious while focusing on the economy achieving its full potential," said Subhrakant Panda, president of the Federation of Indian Chambers of Commerce & Industry (FICCI).
If loan quality is good, rates will be adjusted: SBI
If the quality of loan is good, rates will be lower and risk premium will get adjusted, SBI Chairman Dinesh Khara told CNBC-TV18 after the RBI's monetary policy
Policy action in terms of penal interest is welcome: SBI
Policy action in terms of penal interest is welcome as it will benefit both the system and borrowers, said Dinesh Khara, SBI Chairman.