Speaking to CNBC-TV18 he said, there is no direct correlation between reduction in interest rate and growth in investments as such but rate cut could help enhance liquidity in the market place.
CNBC-TV18 spoke to some analysts on how the markets will react to LTRO 2.0. Check out their comments.
Rana Kapoor, managing director and chief executive officer of Yes Bank comes across as a harbinger of hope. While the market today is fretting over GDP estimates falling down to 6.9%, and Kapoor agrees it is below expectations, he says that the economic climate is likely to improve in FY13.