Bengaluru, February 06, 2016: “We were expecting a 25 bps cut this time around as the on ground realities on the economy front haven’t changed much. The economic bounce back is not as expected, while there is hardly any movement in investment cycle, not to forget the rural economy, which isn’t responding as well.
While we understand that the RBI is perhaps holding up for the front loading cuts to get transmitted in the system, more such cuts are still needed from the RBI. As this should trigger the banking system to start responding or else in this tug of war we could continue to see a status quo on the economy and the future growth prospects of India Inc. Our sense says 25 – 50 bps rate cut over the next six months should provide some respite to retail borrowers, besides corporate India on the cost of funds and it may trigger them to start invesments.”
Corporate Comm India(CCI Newswire)
