In a statement following the RBI’s monetary policy announcement, Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, said the latest rate cut and liquidity steps were broadly anticipated by the market.
She said the central bank’s guidance suggests that more accommodation remains possible. “There could be room for an additional 25 basis points cut, taking the final policy rate near 5 per cent,” she remarked.
Bhardwaj added that once this level is reached, the RBI may prefer to maintain policy rates unchanged for an extended period while monitoring economic data and global cues.
