Chanda Kochhar, MD and CEO, ICICI Bank on RBI monetary policy

The RBI’s action today to lower the policy rate is a welcome step which had been widely anticipated given the significant decline in inflation observed recently. The prudent approach of the central bank in reacting to incoming data in a calibrated manner will reinforce the confidence amongst global investors.

A number of regulatory and developmental measures like tri-party repo for corporate bonds and enhanced limits for foreign investors using the futures market have also been announced.  The formation of a high level committee to address the information asymmetry in the credit markets will help in enhancing transparency and information availability.

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