Quote on RBI MPC by Mr. Jimeet Modi, Samco Group
Below is quote on RBI MPC by Mr. Jimeet Modi, Founder & CEO Samco Group
The RBI MPC has continued its accommodative stance and maintained status quo on repo rates for the seventh straight meet in line with market’s expectation. Inflationary tendencies have been affirmed and the MPC has upped its inflation forecast for FY22 to 5.7% labelling inflation driving price pressures as "exogenous and transitory." While additional measures have been announced to comfort the banks on liquidity availability the continuance of the same will foster an atmosphere of affordability, which has emerged as the new characteristic of the housing market. Conditions around aggregate demand still remain weak and any rate hike would have further deferred growth. Hence, the central bank’s policy remained more balanced than aggressive as it remains on heels to ensure adequate liquidity within the economy.
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