Mr. Dhiraj Relli, MD & CEO, HDFC Securities
The RBI has once again announced a repo rate cut post an unscheduled MPC meet. The RBI statement covers reliefs across a whole host of areas. The cautious language in the statement of the Governor raises concerns about the state of the economy and its path going ahead.
The markets have initially reacted negatively to the RBI announcement. The street, in a time when close to two thirds of the country is under lockdown, keeps expecting more and more reliefs without knowing as to how each of these will be helpful. Shareholders of Banks are worried by the current economic conditions and the pain that is postponed due to the moratorium being extended.
The Govt and the RBI may be using up all their ammunition a little prematurely to fight the current situation. One wonders whether all these relief measures would have been more impactful after the lockdown was completely lifted.