Quote on RBI Monetary policy By Yesha Shah, Samco Securities
Below are Quote on RBI Monetary policy from Yesha Shah, Head of Equity Research, Samco Securities
Quite contrary to outcomes of the previous MPC meets, the rate hike and the subsequent steps announced this time have been fairly in line with the consensus estimates. While RBI’s stance has not changed to neutral, the subtle shift from the words “remaining accommodative” to “withdrawal of accommodation” is an important take-away. The MPC also increased its CPI estimates to 6.7% from 5.7% for FY23, which now appears to be a more realistic level. This contributes to enhanced creditability and confidence in RBI’s policy decisions. The status quo on CRR certainly comes as a positive surprise for the banking sector and augurs well to nurture the credit growth revival. Overall, as the repo rate still has catching up to do when compared to global peers, this policy seems to be in the right direction to achieve Governor’s aim to bring back the policy rates to at-least pre-Covid levels.
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