The Reserve Bank of India (RBI) has decided to stay unmoved.
Its Monetary Policy Committee has maintained status quo on rates and stance -- the repo rate, which is the rate at which RBI lends to banks, has been left unchanged at 6 percent. This is exactly what the street was expecting.
The cash reserve ratio, which is money the banks park with the RBI, has also been left unchanged at 4 percent that was not even up for discussion.
The central bank is maintaining its forecast of 6.7 percent on growth. This is also largely on expected lines.
The small change which ended up being the big news from the policy is the minor hike in the inflation forecast for the near term. For the second half of this financial year, inflation range is now at 4.3 to 4.7 percent against earlier of 4.2 to 4.6 percent. The stance of the bank remains neutral.
In an interview to CNBC-TV18, PK Gupta, MD of State Bank of India (SBI), Manish Wadhawan, MD & Head-Interest Rates at HSBC India, Ashish Parthasarthy, Treasurer at HDFC Bank and Abhishek Upadhyay, Senior Economist at ICICI Securities Primary Dealership shared their views and readings on the same.Watch accompanying videos for more details.