The central bank’s commitment to contain inflation will help economy in the long run, says Mr P. Jayarama Bhat, Managing Director of Karnataka Bank.
Speaking to Business Line , he said: “In the wake of deficient monsoon, the commitment shown by the regulator to contain inflation as a primary target will help the economy in the long run.”
The stand taken by the RBI indicates that it is still wary about the fiscal conditions and inflationary expectations in the domestic economy.
Advantage in cutting SLR by one per cent is that it will be fully available to the liquidity.
To a query on interest rates on deposits and advances, he said bankers will fine tune the rates depending on the individual liquidity condition.