Earlier this week, the domestic capital market got a rate cut as expected. However, what got discussed more than the rate cut was the policy framework under new Reserve Bank of India (RBI) governor Urjit Patel. His first policy review focused both on growth and inflation than focusing on inflation, as was seen in the previous governor’s term.
The Indian economy faces a plethora of macro-economic factors that the RBI tries to manage. According to Nilesh Shah, chief executive officer and managing director—Kotak Mahindra Asset Management Co. Ltd, this policy was softer than expected by the market and has kept room open for further rate cuts.
