Bankers welcome surprise pause in hikes, feel RBI now focusing on growth

Bankers welcomed the status quo in rates from RBI on Thursday, calling it as an attempt to support growth.

The RBI move on the regulatory front announced along with the first policy review of FY2023-24 also found support from the banker community.

Industry lobby Indian Banks Association chairman A K Goel, who is also the chief executive of Punjab National Bank, said it is a welcome pause which could surprise the market.

"Focus of RBI in this policy is to support growth as it wants to evaluate the effects of the previous rate actions to fully get transmitted into the economy," he said.

SBI chairman Dinesh Khara termed it a "pleasant surprise" given the market talks of one more final rate hike.

"With uncertainty looming large, this decision was perfectly timed. Simultaneously, the bouquet of regulatory initiatives like linking UPI to credit and developing the onshore market will spur innovations in product offerings," Khara said.

Zarn Daruwala of foreign lender Standard Chartered B