I am not sure as to how much would the 25 basis point reduction in repo rate would help the economy. To my mind it would have very little or no impact at all. Over the last 3 months we have seen a drop of 50 basis points but that neither resulted in the demand increasing nor an increase in the credit growth. To my mind inflation will remain subdued till Aug and would start going up again from September. The global economies will remain weak and to me the CAD situation will not improve substantially. The growth projection of 6 % also seems high to me. I would not expect it to be in the range of 5.5 % this year.

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