Now that the markets have got 25 bps, they will clamour for more: Mythili Bhusnurmath, Consulting Editor, ET NOWET Now: What is your take on the RBI Credit Policy?
Mythili Bhusnurmath: Markets were clearly divided in the run-up to the policy and contrary to the general impression of Urjit Patel being a hawk, he does seem to have either changed his view, or maybe it was the MPC’s influence over him. Whatever the reason and Nilesh talked about markets not being satisfied, but it is in the nature of markets never to be satisfied. It is always like "Please sir, can I have some more". So I think now that the markets have got this 25 bps, they will clamour for more so we will have to see going forward whether the projection of inflation remaining soft continuous to hold and whether the RBI will follow that up with a 25 basis cut again in December in case the Fed opts for status quo. So let us wait and see. But clearly, Urjit Patel has paid contra to the general impression of him as a hawk. He has proved himself to be the owl that he promised to be -- all wise and all knowing. I hope he is right on that.
Mythili Bhusnurmath: Markets were clearly divided in the run-up to the policy and contrary to the general impression of Urjit Patel being a hawk, he does seem to have either changed his view, or maybe it was the MPC’s influence over him. Whatever the reason and Nilesh talked about markets not being satisfied, but it is in the nature of markets never to be satisfied. It is always like "Please sir, can I have some more". So I think now that the markets have got this 25 bps, they will clamour for more so we will have to see going forward whether the projection of inflation remaining soft continuous to hold and whether the RBI will follow that up with a 25 basis cut again in December in case the Fed opts for status quo. So let us wait and see. But clearly, Urjit Patel has paid contra to the general impression of him as a hawk. He has proved himself to be the owl that he promised to be -- all wise and all knowing. I hope he is right on that.
