Quote of SBI Chairman Mr. Rajnish Kumar on RBI monetary policy
Posted on: 07/Jun/2018 10:19:05 AM - No. of views : (2008)
The RBI decision to raise repo rate by 25 bps is a preemptive and welcome move. Simultaneously, the decision to keep the stance in neutral mode indicates RBI willingness to be flexible and accommodative. On the development front, the bouquet of measures are positive. In particular, the increase in FALLCR will provide more liquidity to banks and moderate short end interest rates. Other measures like increase in threshold limits for affordable housing, encouraging continued formalization of MSME sector are in the right direction. The change in SDL valuation norms are long term positives and the spread of MTM losses over 4 quarters will provide the banks with much needed relief.
