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Below are Quote on RBI Monetary Policy by Mr. Jimeet Modi, Founder & CEO, Samco Group

The RBI continues to maintain their accommodative stance along with a dovish outlook, which hasn’t been much of a surprise to the Street. The repo rate along with the GDP forecast of 10.5% for FY22 was inline with expectations and infact the bond market cheered with a dip in yields post the announcement. The GSec Acquisition Programme of Rs. 1 Lakh Cr for this quarter was the clincher in the entire speech, however, there was only little the MPC could do given the uncertainty on the rising number of cases and vaccination drive. While their attempts to flatten the yield curve and enable sufficient liquidity through bond purchases in the system have worked in the economy’s favour so far, it will have to be seen how prompt the RBI remains if the condition worsens given the renewed lockdowns in a few states in India. The policy lagged aggressiveness and was more balanced this time, nevertheless the efforts do seem positive for the time being.

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