02-08-2022 11:18 AM | Source: PR Agency
Perspective on Pre Monetary policy by Mr. Dhaval Ajmera, Ajmera Realty and Infra India Ltd
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Below is perspective on Pre monetary policy by Mr. Dhaval Ajmera, Director, Ajmera Realty and Infra India Ltd

The RBI's MPC will be unveiling its monetary policy later this week, this will be the last policy for the current fiscal.
While the broader expectation is that the central bank will stay put with its key rates and policy stance. What will be
interesting to watch is the guidance it provides on the interest rate trajectory for the rest of the year. 

After a heavy-duty CAPEX budget by the government, it will be interesting to watch how the central bank will do the heavy lifting on the borrowing front, also maintain an easy liquidity scenario to aid the economic growth simultaneously.

As the economy is recovering and interest rates rising, the central bank has to start hiking rates, what will be important is to maintain a balance as global central banks will start reversing their easy monetary policy and it may lead to capital flight. The real estate and construction sector expects the central bank to adopt a staggered and easy spread out rate tightening cycle in the next few quarters.

 

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