RBI’s focus on liquidity management will limit inflation. Immediate impact of CRR hike will be to drain excess liquidity from the system. There is need for caution on domestic liquidity and developments in financial markets abroad
O P Bhatt, State Bank of India

Global events such as credit concerns and US’ mergers and acquisitions appear to have played a vital rolein the RBI’s decision to hike the CRR. These policy measures will notimpact economic growth
Kalpana Morparia, ICICI Bank

The measures will help normalise overnight rates, which have fallen to unprecedented low levels. They will help control demand conditions in the economy and ease asset price inflation. For banks, cost of funds are likely to go up. That may exert mild pressure on lending rates
Romesh Sobti, ABN Amro Bank

The policy has focused on assessing the existing inflationary environment and addressing inconsistent signals emanating from near zero overnight interest rates that could cause long-term interest rates to move lower
Naina Lal Kidwai, HSBC India

The reduction in credit has slowed down to 24 per cent compared to 31 per cent a year ago.The policy statement doesnot seem to have taken serious note of this fact
Ashvin Parekh, Ernst & Young