Below is the Quote on today’s RBI MPC Outcome by Mr. Jimeet Modi, Founder & CEO, Samco Group
MPC opens arms for the worst-hit MSME sector!
MPC maintains status quo on interest rate and CRR & keeps an accommodative stance which clearly indicates that they are open to further reducing the cost of money, incase inflation rates cool down in the near term. The committee has taken a soft stance in the right direction to aid India’s worst hit MSME sector by making them eligible for one-time restructuring of loans. Various decisions such as no further extension in the moratorium period on loans and increase in the scope of restructuring of loans, demarcates RBI’s intention to maintain the integrity of Indian banking sector. In other countries, we have seen politics merging with monetary policy, but the RBI has clearly stood on merits without any political compulsion. Given the fluid situation across the world, they have indeed done what is best for Indian financial markets.
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