IGI Logo

Below is Perspective on RBI Monetary Policy Announcement By Mr. D.R.E Reddy, CEO and Managing Partner, CRCL LLP

“The status quo retained by the RBI signals a desire to continue stimulating growth. However, with the indicators of inflation now beginning to come through, how long this stance can be maintained is something that will need to be watched. The good thing is that the RBI continues to tilt in favour of growth versus inflation, some of which might be good for the economy. It also hints at a possibility of looking at a more accommodative stance in the longer term so that the economic recovery can be sustained.

Given the demand for metals globally, there is a possibility that some of the short-term inflationary risks can be mitigated by higher inflows of foreign exchange through exports so that the fiscal deficit is suitably managed and this needed too much pressure on the currency on account of inflation.”

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