The outcome of the MPC meeting is in tune with most estimates and leaves no surprises. In my view, by going for a moderate hike to take the policy repo rate to 6.25%, the MPC has taken one more step closer to arrive at a `neutral rate’ though it is difficult to hazard a guess about the figure at this point of time. Also, inflationary pressures remain key to how the macro situation will pan out in the near-term while keeping growth on projected track. On the balance, the policy is rightfully optimistic about the resilience of the domestic economy without throwing caution against inflation and the spillover effect of continuing shocks to global growth to the winds.
-- V.P. Nandakumar, MD &CEO, Manappuram Finance Ltd