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RBI has done a commendable job in focusing on macroeconomic stability by managing inflation expectations, stabilising the currency and shoring up foreign exchange reserves. The central bank's focus on long-term inflation trajectory has helped real interest rates enter positive territory after a long time.
The calibrated lowering of the ceiling on HTM investments for banks can help credit growth, without being disruptive to the debt markets. The assertions that policy will be data-driven brings in a lot of transparency. The emphasis on early identification of bad loans, quick efforts to put these back on track and recovery of stressed assets will go a long way in freeing locked capital. The challenge ahead for RBI is to manage volatility, in the backdrop of policy action by global central banks.
Suresh Senapaty, Executive Director and CFO, Wipro Ltd
