RBI’s Policy : Banks May not lead to Lower Rates.

Perspective on the RBI monetary policy from Dipen Shah, Head- Private Client Group Research, Kotak Securities:

“The RBI’s policy announcements largely met expectations with the repo rate and CRR remaining unchanged. The 0.5% reduction in SLR to 22.5 % will only add to the excess liquidity lying with banks and may not lead to lower rates.

 

Mr. Dipen Shah,
Head- Private Client Group Research,
Kotak Securities

It is, however, a signal that, RBI will provide liquidity if demand rises. Reduction in liquidity under ECR will be offset by the special term repo facility.

Kotak Securities expect that, the RBI will further moderate its policy stance in the next meeting without reducing rates. For FY15, we expect rates to moderate by 0.5% and G-Sec yield is likely to be about 8% by fiscal end.”

For media Contact

Ms. Vinisha Khatwani

Senior Associate, Genesisbm

 Mumbai – 400013, Maharashtra, India.

t +91 22 4417 4510

Vinisha.Khatwani@bm.com

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