Perspective on RBI MPC announcement By Mr. Raghvendra Nath , Ladderup Wealth Management Private Limited
Below the perspective on RBI MPC announcement By Mr. Raghvendra Nath, Managing Director – Ladderup Wealth Management Private Limited.
“The announcements were in line with our expectations. Post growth-oriented budget announcement it was necessary to maintain a conducive environment that would support the growth. Our economy is still at a stage where a lot of our industries are inching back to normalcy from the pandemic and any rate hikes at this stage could have hindered with their recovery especially for the small and medium enterprises where they need access to cheap capital to be back on track. The GDP growth forecast for FY23 of 7.8% along with the inflation forecast of 4.5%, would result in a Nominal GDP growth of 12.5% for FY23 indicating strong economic recovery. Though with oil trading around $90 and projections of further price increases, it would be interesting to see the impact of oil on inflation, especially as the inflation is not only being affected by supply side challenges but also from demand side. We believe that in near term, businesses will continue to benefit from lower interest rates and high liquidity in the system, especially those businesses with capex in pipeline.“
Above views are of the author and not of the website kindly read disclaimer
