Research and analysis
Indian Economy : RBI Pauses On Rates And Moves On Bank Licenses
No move on bank rate, but RBI approves some licenses
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As expected, the RBI kept rates on hold on the back of moderating inflation. Extended pause likely with lower inflation and sluggish growth. Cautious outlook for 2014-15, with growth likely to remain in the 5-6% range. In-principal approval for two firms, IDFC and Bandhan Financial Services, to set up banks also announced. A framework for on-tap and differentiated licensing is also expected, which would potentially benefit UK financial services.