The economic situation is improving and a further cut in policy rate at this juncture would have been well-timed. A further push to demand through lowering of interest rate would have translated into higher investments. I hope the RBI will continue to work on improving the transfer of benefits of previous rate cuts — Harshavardhan Neotia, FICCI president
The RBI’s decision to maintain status-quo was as per market expectations. We believe transmission of rates will happen gradually over the next few months as credit growth picks up pace. The decision to frontload liquidity provisions through an announcement of open market operations is a well thought-out move. — Arundhati Bhattacharya, chairman, State Bank of India
The baton now passes on to the next Governor and, probably, the MPC from the next meeting. We do not expect much shift in stance with the government setting the inflation target at 4 per cent with 2 per cent band on either side. We pencil in 25 basis points for the rest of FY2017. — Kotak Institutional Equities