IGI Logo

Below is Perspective on RBI MPC announcement by Mr. Nish Bhatt, Founder & CEO, Millwood Kane International

“ The RBI kept key policy rates unchanged, policy stance accommodative was on expected lines. The central bank has stuck to its stated promise of keeping system liquidity excessive to help growth.

The excess liquidity will help address the anemic growth in credit offtake. RBI retaining its GDP growth forecast for FY22 at 9.5% is a sentimental booster and the CPI forecast for fy22 lowered to 5.3% from 5.7% earlier despite high crude prices will help address any concerns on rising inflation.

An Accommodative policy by the RBI should be well complemented by strong corporate earnings, a high pace of vaccination, and a steady pace of economic growth.”

Above views are of the author and not of the website kindly read disclaimer