“The RBI has maintained stability in monetary policy with a focus on the medium-term inflation targets being sustainably achieved, while continuing to be supportive of growth. The policy has maintained an accommodative stance while taking into account global developments and domestic economic conditions. With respect to demonetisation, the assessment that this will have only a transient impact on growth is welcome. With regard to liquidity and interest rates, the withdrawal of the incremental Cash Reserve Ratio requirement and the use of other instruments such as the Market Stabilisation Scheme to manage liquidity is welcome. Deposit and lending rates are expected to continue to show a downward trend going forward.”