State bank of India has said that RBI's decision to hike the rate was in consonance with expectations.

SBI's Chairman Dinesh Kara said, Continuing strong job data from the Federal Reserve has made monetary policymaking a delicate balancing act for emerging economies' central banks. Beyond the rate hike, there is a bouquet of policies that attend to the microstructure of the market. He said, The proposal to address the issue of penal charges on services will bring a rule-based regulation. The initiatives on climate risk will improve compliance, capital budgeting and financial disclosures for banks, he added.

In the Ecowrap report, SBI has said that the April monetary policy statement of RBI thus assumes special importance of whether we can signal an exit from coordinated monetary policy increases. Otherwise, it could become a self-fulfilling prophecy of central banks of emerging markets doing a continuous catch-up with the Federal reserve.