The MPC announcement of maintaining the policy Repo rate, Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) at existing level was on expected lines and also to remain focused on withdrawal of accommodation for inflation targeting.
Domestic economic activity remains strong and resilient with agriculture activity holding up, industrial activity gaining momentum and services sector showing robust expansion. This has resulted in pickup in private corporate investment and also aided by government thrust in public sector capital investment and capacity enhancement. This would aid growth in credit demand in the forthcoming years with both increase in level of activity for working capital and term loans for capex funding.
Apart from other announcements the introduction of Key Fact Statement (KFS) for MSME borrowers would go a long way in ensuring transparency, simplicity and uniformity.
