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Chairman,
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Enam Financial Consultants Pvt Ltd
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| The Credit Policy as a whole is wise and quite good for equity markets. The governor has gone in for stability and has made minimal changes in his maiden policy. |
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| Some people even expected that given the rise in inflation, an upward pressure on interest rates has begun. |
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| Stability in interest rates with no further downward bias should result in money moving out of the debt market. |
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| Also, we should see a higher number of public issues from certain sectors of the economy that are doing well. |
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| By not cutting the Bank Rate and CRR, the RBI has only reduced the immediate relevance of these tools in its Monetary & Credit Policy. |
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| The RBI, as indicated, can reduce the Bank Rate or Repo Rate whenever the situation warrants or additional liquidity is required in the money market. |
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CRR, at 4.5 per cent, is still 150 bp higher than RBI
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