Scope for further cut in repo rate cited

?????????Expressing his views on the latest repo cut announced by the Reserve Bank of India (RBI), Mr. V.S. Parthasarathy, Group CFO, Mahindra & Mahindra Ltd., has, in a press release, stated: “The RBI was frugal in delivering a 25 bps cut in repo rate with an outlook that further action will hinge on evolving data points. While we respect RBI’s action today, we do expect more is in store for the sake of growth, which is still fragile. The widespread prognosis of monetary policy experts, based on today’s policy, is that the RBI will be in pause mode on rate action from now on until 2016. However, I am an optimist and truly hope that the great Indian orchestra with GoI’s policy actions, fiscal rectitude, external competitiveness and benign Current Account will be completed by RBI with its high notes of positive rate actions to create a symphony for progress.” The press release added: “For investment to gather speed and feed into demand and output gap to reduce, competitive interest rates are key enablers, and it is well known that Indian real interest rates are well above the desired spread of 150-200 bps, leaving room for reduction of at least 50 bps more.