The stance of the annual credit and monetary policy is calibrated. The economic growth is coming from services: Pratip Chaudhuri
Repo rate down 25 bps to 7.25%; cash reserve ratio unchanged; central bank sees little room to ease policy furthe
Experts see unhedged forex exposure by India Inc as speculative and support RBI stance
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
A reduction of at least 50 basis points would be carried out every quarter, beginning with the quarter ending June
Risks from unhedged foreign exchange exposures will also make borrowing expensive
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
Discussion paper on banking structure rejig by June-end
Move to comfort liquidity scenario and bond market sentiments
Without simultaneous increase in money supply, transmission of rate cuts is unlikely
In 2012-13, the central bank reduced repo by 50 basis points and CRR by 75 bps
The central bank can't do much when it comes to lowering interest rates or in turn your EMIs
Discussion paper on banking structure rejig by June-end
The RBI governor has set tight deadlines to bring out a slew of proposals on gold, real estate and other areas. Expect a lot of action the next few months