Top bankers laud RBI's rate cut, says step will reinforce confidence amongst global investors

New Delhi [India], August 2 (ANI): MD and CEO ICICI Bank, Chanda Kochhar on Wednesday said that the rate cut by the Reserve Bank of India (RBI) is a positive step, which will react to incoming data in a calibrated manner to reinforce the confidence amongst global investors.

"The RBI's action today to lower the policy rate is a welcome step which had been widely anticipated given the significant decline in inflation observed recently. The prudent approach of the central bank in reacting to incoming data in a calibrated manner will reinforce the confidence amongst global investors," said MD and CEO ICICI Bank, Chanda Kochhar.

Adding to this Kochar added that the bank's decision to form a high level committee to address the information asymmetry in the credit markets will help in enhancing transparency and information availability.

"A number of regulatory and developmental measures like tri-party repo for corporate bonds and enhanced limits for foreign investors using the futures market have also been announced.," added Kochar.

On the other hand, hailing the RBI's decision on the rate cut, State Bank of India (SBI) chief Arundhati Bhattacharya said, "The policy commentary was nuanced and balanced indicating upside risks to inflation have waned, whereas growth impulses in industry and services are weakening."

"We are hopeful that this measure should enable a gradual recovery in credit cycle with a revival of demand," added Bhattacharya.

Earlier today, the RBI announced reduction in the reverse repo rate by 25 basis points (bps). The six member monetary policy committee (MPC), headed RBI governor Urjit Patel announced the policy in view of the moderation in price trends that have persisted long enough to warrant lower loan costs. (ANI)

This story has not been edited. It has been published as provided by ANI