RBI MPC: Top officials of banks said that the Reserve Bank of India's (RBI) decision to keep the repo rate stable is as per expectations. Bankers described the central bank's softening of stance as a positive step taken proactively. State Bank of India (SBI) Chairman CS Shetty said, 'RBI's policy stance recognizes the trend of strong growth and softening of inflation. Changing the stance and keeping it at the old level is a positive step taken proactively. This will ensure that RBI remains ready to maintain inflation at the target of 4 percent.'

Rate cuts expected in upcoming announcements.The focus

Standard Chartered Bank CEO Zarine Daruwala said the decision to maintain the status quo was taken due to strong economic projections for the financial year 2024-25. Also, the neutral stance reflects RBI's confidence in keeping inflation within the set limit. South Indian Bank Chief Financial Officer Vinod Francis said, "The MPC's change of stance to 'neutral' is encouraging. We can expect a rate cut in the upcoming announcements."

Focus on inflation was repeatedly talked about.
Manish Kothari, commercial banking head of Kotak Mahindra Bank, said that there was a repeated talk about clearly focusing on inflation. This indicates that any future rate cuts will depend on inflation coming down. M V Rao, chairman of the bank employees' body IBA and managing director of Central Bank of India, said that the policy is in the expected direction. RBI will still be cautious about keeping inflation within the target range.

The process of digital transactions will become easier.
Ajay Kumar Srivastava, Managing Director and CEO of Indian Overseas Bank, said that RBI's decision to maintain the repo rate at 6.5 percent reflects a balanced approach towards supporting growth while combating inflationary pressures. He said that the increase in UPI transaction limit is also a positive step and this will make the process of digital transactions easier.