3rd Bi-Monthly MPC Statement - Suman Chowdhury, President-ratings at Acuité Ratings and Research

"The fourth rate cut of 35 bps on the back of another 75 bps effected in the current calendar reflects RBI's accommodative stance strongly supported by a benign inflationary outlook and increasing growth risks. Acuité, however believes that RBI will need to maintain an attractive yield differential with DMs and fellow EMEs to ensure the sustained flow of global capital in these volatile times. Additionally, the steps taken to revive bank lending to the NBFC sector through higher bank exposure limits to a single entity and expanding the priority sector credit definition will help to alleviate the funding challenges in the sector and facilitate higher credit flow to the retail segment."

Source : Equity Bulls

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