The RBI has taken a good call in the mid-quarter policy review, according to an economist.
The President and Chief Economist of YES Bank, Dr Shubhada Rao, told Business Line that the RBI’s decision to keep the cash reserve ratio (CRR) and repo rate unchanged is a good call by the Governor.
Stating that the recent renewed pressure on inflation has become more evident, she said: “I think, probably, the RBI would await more concrete steps from the Government towards fiscal adjustments.”
Fortunately the Greek outcome has come as a market positive. That also may have allowed the RBI the luxury of waiting for some more time for rate cut action, she said.