IGI Logo

Below is quote on RBI Monetary policy expectations By Shivam Bajaj, Founder & CEO  at Avener Capital

"Central Banks globally have embarked upon raising Interest Rates to curb inflationary pressure. However, India so far has maintained a more accommodative policy. Retail inflation in India in Feb 2022 rose to 8 Months high of 6.07% which is outside the RBIs target range of 4-6%. In the last MPC meeting, RBI attributed high inflation largely due to supply side pressures and hence they could be keen to maintain a more accommodative policy in this time MPC. 

Tightening of monetary policy can assist in curbing demand but not in augmenting supply. There is likely to be a renewed optimism in regard to inflation on the back of the USA announcing a massive release in the country’s strategic oil reserves and Russia offering crude oil to India at a big discount".

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