The Reserve Bank of India’s Monetary Policy Committee decided to keep the benchmark lending rates unchanged for the second consecutive meeting. While Governor Shaktikanta Das appeared bullish on growth and also lowered inflation projections marginally, he remained cautious about external factors that could affect both inflation and GDP growth going forward. So will the pause by RBI lead to a pivot?
Governor Shaktikanta Das recently acknowledged the role played by banks in supporting the economy and maintaining resilience. But he also sounded a note of caution, and asked public sector banks to further strengthen governance. It comes at a time when the financial health of government-run banks has improved remarkably. So is there reason to worry? And are public sector banks under pressure?