Indian economy continues to progress on expected path: Chanda Kochhar on RBI policy

The Reserve Bank of India (RBI) has kept key policy rates unchanged at 6.75% in the monetary policy review meet. 

The move from Governor Raghuram Rajan is in line with market and experts' expectations after a surprise 50 bps cut effected in the last monetary policy meet. 

Commenting on the RBI's move to keep the rates unchanged, ICICI Bank CEO, Chanda Kochhar said, "The monetary policy statement indicates that the Indian economy continues to progress on the expected path, with improving growth indicators and inflation contained within the targeted range. The central bank has expressed strong confidence in the government’s commitment to fiscal consolidation".

"As the impact of monetary policy measures taken so far play out in terms of bank funding costs, lending rates are expected to continue to moderate. Overall, macro-economic conditions are conducive for an improving growth trajectory as the various policy measures announced by the government take effect", she added.