Accepting the unchanged current credit policy of RBI announced today, the market experts Nirav Vakharia and Akash Jindal said here on Tuesday that RBI has already indicated that until the target of six percent inflation is not achieved they are not going to budge from their interest rate line.
Vakharia told ANI, “It was given that RBI wants to change its policies as inflation has been very stubborn and it continues to rules high due to monsoon effect and demand of festival season. It was already calculated that inflation is not going to go down before January 2015. So we have got just 2-3 months down the line, after which we can see some cool down effect in the inflation.”
Explaining the reason for no changes in recent credit policy of RBI, Vakharia said “RBI has already indicated that until the target of six percent inflation is not achieved they are not going to budge from their interest rate line. So, there is no change in policy rate of SLR and CRR.
Earlier today while addressing the media RBI Governor Raghuram Rajan said, “As far as the interest rates are concerned, we didn’t make a move on that.” It remains unchanged.
“We can reach inflation target of 6 percent by January 2016, but there are uncertainties,” he added.
Reacting to the recent announcement on unchanged credit policy rate, Akash Jindal, another market expert told ANI, “No change has been made in interest. Neither have they made change in SLR nor in CRR.”
“Common people were in hope that there will be relief to some extent in taking home loans and buying car, motor cycle, as we know that this is festive season. But it didn’t not happen,” he added.
“I think RBI is focusing on inflation very much. There is no certainty about decrease in inflation,” said Jindal.
“No doubt we got some concession in crude oil as a gift. But the international market is volatile. So, in any time the inflation can increase. If the rate of interest gets less then it will be beneficial for the manufacturing sector,” he concluded.
Reserve Bank of India on Tuesday kept the repo rate unchanged at 8percent. The central bank also kept CRR, SLR unchanged.
The reverse repo rate was also maintained at status quo of 7percent.
—ANI