“The Reserve Bank of India (RBI) decided to keep interest rates on hold in spite an expectation of an interest rate cut. The committee’s view on expecting inflation to cause the growth graph move south and hamper growth rate is a point well taken. It’s better to have consistent and sustainable reduction in repo rates rather than having a momentary cut leading to stress on the already strained demand on account of recent demonetization.
The RBI expects a sharp recovery in growth on account of renewed growth in cash flows from unorganized sectors like food and beverage, transportation and various cash intensive sectors. It will be interesting to see which way the demand moves in the next 3 quarters. No serious complaints as of now, keeping the larger and longer term picture in mind.”
Amit Wadhwani, MD, Sai Estate Consultants