Pragmatic view taken by the RBI; still expect rate cuts going ahead

The repo rate call was a tough one to take considering that inflation is high and at the upper level of the band

This credit policy was always going to be of special interest for three reasons. The repo rate decision is of prime interest to the market, which normally wants it to come down. Hence, the MPC stance was important. Second, as we are now five months into the year, the Reserve Bank of India’s (RBI’s) take on gross domestic product (GDP) growth is something everyone was looking for. And third, after the moratorium and its extension, the central bank’s take on the future steps in terms of extensions, sector specific relief and restructuring of loans is something that was expected. 

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