July 25, 2025 06:58 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Tejashwi Yadav mulls boycotting Bihar polls over SIR, says 'no point in holding elections when people can't vote' | 'EC can't escape': Rahul Gandhi slams poll body for 'cheating' amid uproar over SIR in Bihar | 'Perverse exercise of judicial power': SC slams Karnataka HC bail to actor Darshan in Renukaswamy murder case | Supreme Court stays Bombay HC order acquitting 12 people in Mumbai train bomb blasts case | ED raids Anil Ambani's 35 premises in Delhi and Mumbai for alleged money laundering | PM Modi embarks on visit to the UK and Maldives | 'Steeped in fanaticism and terrorism': India slams 'serial borrower' Pakistan at UN | 'We stopped India-Pakistan war': Donald Trump reiterates 'ceasefire' claim | Air India completes inspections of Fuel Control Switch on Boeing aircrafts after deadly Ahmedabad crash | Supreme Court refuses to stop QR code directive for eateries along Kanwar Yatra route

RBI keeps repo rate unchanged, receives mixed reviews

| | Dec 08, 2016, at 12:37 am
Mumbai, Dec 7 (IBNS): The Reserve Bank of India's (RBI's) decision to stick to its old repo rate garnered mixed reviews from the markets.

While some said they were happy with it, others have termed it as a disappointment.

Chanda Kochha, MD and CEO of ICICI Bank said, “The RBI has maintained stability in monetary policy with a focus on the medium-term inflation targets being sustainably achieved, while continuing to be supportive of growth. The policy has maintained an accommodative stance while taking into account global developments and domestic economic conditions."

KVS Manian, President, Corporate, Institutional & Investment Banking, Kotak Mahindra Bank Limited, said, “There was a  broad expectation for a 25 basis points repo rate cut, which would have given banks room to cut lending rates. To that extent, the markets are disappointed. But the withdrawal of the incremental CRR effective December 10, 2016, does  give banks some flexibility to cut rates."

Manian said that the RBI seemed far less sanguine on inflation than the rest of the market.

He said that with this move, the RBI has shown faith in the market and is optimistic that things will be normal following demonetisation.

"On demonetization, the message from the central bank seems to be that that things will get back to normal soon, and they see it as transitory. On that front, they seem far more optimistic than the market,” Manian added.

Reacting on the same, Anuj Puri, Chairman & Country Head, JLL India, said, "For the real estate sector, which is currently reeling under pressure from the recently-announced demonetization of high-value currency notes, a rate cut could have definitely allayed fears of a near-term loss of momentum."

"What could offer the real estate community some respite is if the policy committee would continue to remain accommodative and act positively on any opportunity available for rate cuts as soon as they arise going forward," he added.

Contrary to the expectations of many,  Reserve Bank of India Governor Urjit Patel left the repo rate unchanged in the first policy meeting post demonetisation, reports said.

The six-member  Monetary Policy Committee (MPC) of RBI decided not to cut the repo rate from 6.25 percent.

The Monetary Policy Committee (MPC)  in its October policy review had cut interest rate by 0.25 per cent .

The RBI's decision triggered a fall in the stock market with the BSE Sensex and NSE Nifty going down.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
RBI announces repo rate cut Jun 06, 2025, at 10:51 am
FM Nirmala Sitharaman presents Budget 2025 Feb 01, 2025, at 03:45 pm
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm
Close menu