Alok Kumar Choudhary, MD, SBI, says “depending upon the evolving situation in terms of inflation and of growth because already there is growth in the economy, in GDP. RBI said that on careful deliberation on the evolving situation, the interest scenario will change and it is all on how the data comes up in terms of consumption, in terms of demand, GDP as well as inflation, the moving parts, will decide as to how interest rate cycle moves.”
On capex growth
In the data released by RBI in terms of the business confidence, in terms of the inventory order book Orbis Data, you will find that all the markers say that there is a great optimism in terms of the Business Expectation Index as well as Business Assessment Index. Capacity utilisation has increased.
So people are thinking that there is a lot of demand and that is why investments by corporates, the private capex and the government capex are taking the lead role, I think that there is a lot of optimism around and the data points also suggest that the corporates are willing to take more and more funding for expanding their capacities and diversification in order to satisfy the hunger of demand.
So do you think that high rate of credit will be sustainable this year?
As of now, the situation is that we have a repo rate of 6.50% and depending upon the evolving situation in terms of inflation and of growth because already there is growth in the economy, in GDP. RBI said that on careful deliberation on the evolving situation, the interest scenario will change and it is all on how the data comes up in terms of consumption, in terms of demand, GDP as well as inflation, the moving parts, will decide as to how interest rate cycle moves.
