The latest policy focuses on continuity of monetary policy and emphasises the need for flexibility in the deposit and lending rates. The RBI is also consistently moving towards deepening the debt markets and strengthening the overall financial infrastructure. Significantly, the central bank is also cautiously optimistic on the economic prospects for the current year despite a poor monsoon.
The rate cuts are a pleasant surprise, and is in line with its intention to maintain a softer interest rate regime. The CRR cut decision in the backdrop of high liquidity is in line with the RBI
