KPMG's Statement on the Repo Rate Deduction

Statement of Shashwat Sharma, Partner – Management Consulting at KPMG in India on the Repo Rate deduction:

Shashwat Sharma, Partner – Management Consulting at KPMG in India says, “Whilst there seems to be no structural changes in the Indian economy since the last monetary policy, considering the continued slide in oil prices, easing of inflation rate, momentum in industrial production and improving fiscal situation, the RBI has mustered courage to reduce the Repo Rates by 25 bps. This clearly indicates start of falling interest rates but the litmus test would be when the oil prices moves upwards from the current levels or inflation levels breach the comfort levels.”