Comments of Mr V Vaidyanathan, Chairman, Capital First Limited on RBI Monetary Policy

“The key point to note from this policy is that the RBI is keenly awaiting transmission of the past cuts. In a way the RBI is saying banks are being incongruous in their behaviour of passing rates in an increasing interest rate environment versus a reducing rate period and are suggesting this practice be addressed. In keeping monetary policy rates unchanged, there is no surprise in this bi-monthly credit policy released on 7^th April 2015. Also, a bit of bullishness about rate cuts have been tempered through this policy, by way of various pre-conditions mentioned.”