Don't think RBI will be rushing to cut rates: Experts

Moneycontrol Bureau

Reserve Bank Governor D Subbarao today said he cannot speculate on when he will start cutting policy rates, but assured that the central bank will ensure that there is enough liquidity in the system by conducting open market operations.

Diwakar Gupta, CFO, State Bank of India sees two clear positives from RBI's statement. "The first is that though inflation has not eased off significantly, but the Reserve Bank has paused. So they are ahead of the curve in being proactive."

"The second is that growth now has become almost an equal priority for them though the monetary authority really all along has been saying that inflation is their number one concern. So that augers well for a softening and the fact that we are really over the peak of the current interest arte cycle. That