Quotes on RBI Monetary Policy 

Venkatraman Venkateswaran - Group President & Chief Financial Officer at Federal Bank
"The RBI Monetary Policy Committee (MPC) has decided to maintain the status quo on the Repo rate, aligning with expectations. Considering that the transmission of the rate hikes hasn’t been fully passed on, it was a prudent decision to adopt a wait-and-watch approach. Inflation management remains a focal point for the central bank, with a clear indication that the MPC will intervene if necessary to prevent any spillover effect from food or oil price inflation.
Given the broad-based credit growth and the relatively favourable state of the Indian economy compared to the global economy, banks will continue to pursue retail deposits."

Umesh Revankar, Executive Vice Chairman, Shriram Finance 
“The MPC’s announcements, especially the maintenance of the benchmark repo rates and continued withdrawal of the accommodative stance was expected given the stickiness of headline inflation. Despite the projection of 5.4% inflation rates for FY23-24, the MPC’s announcements raise hopes of achieving the targeted level of 4%.  
Hopefully, the upcoming festive season will boost consumption levels. A robust Kharif crop performance will further boost economic growth. The RBI’s complete discontinuance of the incremental cash reserve ratio introduced in August is a positive step. Also, its measures to promote digital payments at the grassroots level through interventions for beneficiaries of the PM Vishvakarma scheme will support small and medium-sized enterprises (SMEs) and enhance the scope of NBFCs.  
We see great promise for buoyant economic activity and consequently, growth in commercial and retail credit. Taking a cue from what the Governor said, the turning pitch should not deter us from playing our shots.”

Ajit Banerjee, Chief Investment Officer, Shriram Life Insurance Company
''The decision to pause along with no change in stance was in line with the market expectation. We feel that the tone is relatively more hawkish than the August Policy keeping in mind the additional emphasis being laid on managing the liquidity position. It seems that the RBI MPC may continue to remain on a pause even in early FY2025 with a focused view on liquidity management. The RBI re-emphasized the aim to align inflation to the 4% target over the medium term. The Monetary Policy Report projects average CPI inflation at 4.5% in FY2025. The RBI remains comfortable on the growth front though risks to the outlook will be from the external front. The Monetary Policy Report projects GDP growth at 6.5% in FY2025.
The MPC has expressed its concern over global growth losing momentum and opines that the view taken by major central banks about maintaining higher for longer rates is inflicting volatility to the financial markets. Back home  its comfortable about the buoyancy in the urban consumption and improvement shown in pick up in rural demand. MPC is also very upbeat on domestic economic activity holding up which is further expected to be boosted by the festive consumption demand."

Suresh Khatanhar, Deputy Managing Director, IDBI Bank
“The decision to keep interest rates unchanged is in line with expectations as inflation management has been on the right track with core inflation having come down by 140 basis points from its recent peak in January 2023. With GDP growth estimates remaining the same at 6.5% for FY 23-24 a linear growth across industries looks like a good possibility. On the liquidity front the withdrawal of the ICRR of 10% which impounded about Rs 1 lakh crore from the system will help boost consumer spending especially in the festive season. However, there is a need for cautious optimism around the maintenance of the status quo by the RBI, due to the looming global economic pressures.”

Ashwani Dhanawat, Chief Investment Officer, Shriram General Insurance Company
“As expected, the monetary policy remained balanced with no change in the repo rate for the fourth time in a row. This monetary policy indicates no impact on home loans and other EMIs as the repo rate remains unchanged at 6.5%. The RBI governor in his speech also mentioned that India is poised to be the new growth engine of the world. The fight for taming inflation continues, and MPC will remain watchful and resolute in its commitment to align Food inflation at its targeted level which is 4%. After today’s meeting, it looks like the repo rate will continue to take a pause for this financial year.”

Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani
“The monetary policy committee's decision to maintain the current repo rate is prudent and encouraging for the housing market. The stance of the committee provides prospective homebuyers with optimism as it acknowledges the controlled inflation. The Indian real estate market has witnessed a notable growth of 9.5% since early 2023. The REPO rate decision, coupled with the upcoming festive season, will only bolster this growth further.
Festive season embarks a surge in the demand and sales of properties connected to long-standing traditions and characterised by their auspicious origins. Additionally, the steadfast repo rate plays a crucial role in relieving pressure within the sector and spurring growth in infrastructure and construction. This, in turn, fosters a sense of confidence within the real estate industry, inspiring them to embark on new projects while benefiting from a stable interest rate environment.
This assurance of a favourable financial climate sets the stage for a robust phase of construction and development, offering the promise of a brighter future not only for the housing market but also for the overall economy.”
 

Kishore Lodha, Chief Financial Officer, U GRO Capital 
“Once again, the primary focus of the RBI Monetary Policy this time has been on inflation. Since the current inflation is far above the targeted rate of 4%, immediate rate cuts seem to be unlikely, thus rates will remain elevated for some more time. On the positive side, GDP growth has been projected to be at 6.5%, manufacturing and services sector PMI data has been at a multi-month high, and the core inflation is showing signs of easing out. Erratic monsoons may result in reduced kharif crops, so some amount of concern regarding food inflation will continue. Since we are in the festival season, we will have to wait and see how the unchanged stance of the RBI on liquidity plays out during this time.”