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Below are Views on RBI monetary policy June 2021 by Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank Ltd

“In line with market expectations, the MPC left key rates unchanged and continued with an accommodative stance for as long as it is necessary for economic revival and growth. The central bank will ensure ample liquidity support, which will ensure rates are stable.

The second wave of the pandemic has seen urban consumption and rural demand being severely hit, thus slowing down consumption and growth after a near normal Q4 of last fiscal. Thus, stable rates and ample liquidity should help bring economic growth back on track as the pandemic eases across various states and districts.

The GDP growth estimate for FY’22 has been moderated to 9.5% and inflation is estimated at 5.1%. With the forecast of a normal monsoon, food prices should stabilise. However, upside risks to inflation do remain with increasing global commodity prices. Export demand is better due to uptick in global trade and economic growth.

Overall, a policy that resonates with the current economic and pandemic situation.”

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