The policy statement has provided a clear guidance that the recent assessment of growth-inflation dynamics provides little scope to RBI for further monetary expansion
The stance of the annual credit and monetary policy is calibrated. The economic growth is coming from services: Pratip Chaudhuri
With expectations of a normal monsoon, the pressure on consumer price index may come down
The cautious policy might have reiterated its statement that there was little room for further rate cuts
The policy has proposed several other measures to promote financial stability and credit discipline in the banking industry
RBI is expected to remain vigilant about the outlook, but at the same time finds itself compelled to cut rates
Considering the current dynamics, a 25-bp rate cut and a clear mention of limited monetary space reflect an appropriate policy stance
Monetary tightening has become counter-productive - hurting growth rather than taming inflation
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