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Below is Comment on the RBI Monetary Policy By Mr. Umesh Revankar, Vice Chairman & MD, Shriram Transport Finance

“Pleasantly surprised by RBI’s more dovish than expected stance and it continued to prioritise growth by keeping rates unchanged and also maintaining an ‘accommodative’ stance for as long as necessary. Despite commodity prices being elevated, RBI is confident of maintaining prices and that is encouraging. The accommodative stance also indicates that there will be no aggressive rate hikes in 2022, which is a positive for consumers. Any hike in rates would have impacted MSME which are in revival mode. Both the RBI and the government with its thrust on capital spending in the recent budget are working in tandem to revive and support broad based economic recovery. Considering this we continue to remain optimistic about revival in CV demand especially demand for Medium to heavy vehicles (MHCV) which has seen demand contraction in last two years. CV sales in Q3 have been flat, but now with the infra push from the budget 2022 we expect a healthy revival in credit in 2022.”

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