Mr. PH Ravikumar, Managing Director, Capri Global Capital Limited on the RBI’s Mid-quarter Monetary Policy announces today

“Very pragmatic move from RBI side. The common expectation was at the minimum a 25 basis points increase. Given however the current actual levels of interest rates, the current state of growth and economy, sustained slow down in IIP, and notwithstanding the elevated retail inflation levels, particularly food inflation, I would believe that this decision is to give a chance for growth to start picking up.

It must be borne in mind that in support of this decision the WPI core inflation (excluding fuel and food inflation components) is at just 2.65%.”