Experts welcome RBI pause on rate hike
Experts have welcomed RBI pause on rate hike, post its three-day bi-monthly MPC meeting which concluded here this morning.
image for illustrative purpose
Mumbai, Apr 06 Experts have welcomed RBI pause on rate hike, post its three-day bi-monthly MPC meeting which concluded here this morning.
After having hiked the repo rate by 250 basis points in the current fiscal, the RBI kept its key policy rate unchanged at 6.5 per cen in the MPC which concluded today.
RBI governor, Dr Shaktikanta Das in his address post MPC meeting said, “The inflation has moderated globally in recent month, but its decent
is proving long.”
Das said that policy stance can still be regarded as accommodative. He agreed that overall inflation was above target.
He also said that bank failures have brought contagion risks to forefront.
According to RBI governor, “ global economy is witnessing renewed phase of turbulence.”
Nilesh Shah, MD, Kotak Mahindra Asset management Company said, “The RBI’s pause is like Sachin stroke on a tricky pitch but with eyes set in and having the luxury of hitting the ball where ever he wanted. The RBI had the option of a rate hike or a pause. The pause was not entirely unexpected.”
The RBI will watch developments and data before taking the next call.
The market expects the RBI to fetch maximum run and win the match on inflation and growth, no matter which Direction they hit the ball, he said.
