The Reserve Bank of India on Monday left interest rates unchanged but cut the cash reserve ratio for banks, saying the primary focus of monetary policy remains fighting inflation, days after the government unveiled a spree of reforms to boost growth and improve its fiscal position.
Here is what the experts have to say about RBI's 'cautious' move:
Jagannadham Thunuguntla, SMC Global Securities, New Delhi
"No repo rate cut indicates that the RBI is still concerned about the inflation and until and unless the inflation comes down to comfortable levels, there won't be any immediate move on that front. However, the government's recent steps towards fiscal management have given some room to the central bank to adopt a liberal monetary policy."
