RBI Monetary Policy by Mr. Rana Kapoor, MD & CEO, YES Bank and Chairman, YES Institute
“I foresee RBI’s cautious stance giving way to accommodative actions in August, on the back of favorable monsoon outcomes and sustained acceleration of Government reforms.
Despite a compelling case to cut interest rates amidst favorable monsoon outlook, CPI inflation in line with RBI’s projected path, Government’s progressive reforms & fiscal consolidation and the need to nurture growth, RBI has preferred to remain cautious. It appears that the uncertainties on the global horizon with Fed policy overhang and UK Brexit vote tipped RBI’s decision in favor of a status quo. With its accommodative stance still in place, I now see high probability of a rate cut in August by at least 50 bps.”