By-Mr. CS Setty, Chairman at SBI & Chairman at IBA

“A 50-bps policy rate cut, a staggered 100 bps CRR cut and change of stance to neutral, RBI today’s monetary policy communication was action packed – innovative, out of the box and an unanticipated surprise. The MPC has broadly addressed any concerns on slowdown in growth on account of global uncertainties and fully capitalized on the softening domestic inflation to deliver a frontloaded rate cut, staggered durable liquidity injection yet conserving the space for future action.

The policy is definitely positive for all sectors of the economy, particularly for banking and finance. In particular lower cost of borrowing will act as a counterbalance to any uncertainty.”