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The Managing Director of City Union Bank, Dr N. Kamakodi, has termed the RBI’s decision (on maintaining the status quo on key policy rates) as “appropriate’’.
“Looking at the macro-economic data, leaving the key rates untouched seems an appropriate decision at this juncture,’’ he told Business Line .
As already reported, the apex bank has decided to keep the cash reserve ratio of scheduled banks unchanged at 4.75 per cent and the repo rate at 8.0 per cent.
Admitting that the interest rates were already high, Dr Kamakodi said that this had nothing to do with the monetary policy per se.
“The borrowing rate is high, hovering around 9.5 and 10 per cent; and inflation is inching up; it is yet to come to the comfort zone. Any reduction in the key rate at this juncture, may not therefore support growth,’’ he said.
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