After opting for status quo in policy rates, Reserve Bank Governor Raghuram Rajan on Tuesday said any more cut will depend on further transmission of previous rate cuts by banks, softening in inflation and progress of monsoon.
The announcement of the formation of the BRICS bank will have as much an impact about how the non-G7 countries manage their economies and their foreign reserves, as it does on the intellectual discourse. The development priorities and agenda which was hitherto set by western experts responding mostly to western priorities and notions will now have to compete with an intellectual tradition that is and can be very different, says Mohan Guruswamy.
Rajan strongly defends RBI's decision to hold the key rates in the absence of any new data points.
Structural changes to government finances could be focus of the Union Budget, says Mihir S Sharma.
Any change in rates would mean more volatility; else, poll outcome-fuelled rally expected to continue.
The muted CPI inflation print at 5% earlier this week, followed by a similar WPI number released Wednesday, seems to have spurred India's central bank into action, is how the economists are reading into Reserve Bank of India governor Raghuram Rajan's 25 basis point cut in repo rate.
Many things could play spoilsport for the Indian economy.
With prices unlikely to run up sharply, genuine buyers can start readying deals before the festival season starts.
RBI is unlikely to stem the slide against the dollar as the greenback is rising rapidly against all currencies in the world.
Growth in India will pick up from current levels, says LEO Puri, managing mirector, UTI Asset Management Company.
It was the RBI which destroyed our $-job economy. It is for the RBI to resurrect it by instituting news ways of managing the INR, says Sonali Ranade
