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Below is Comment on the RBI Monetary Policy By Mr. George Alexander Muthoot, MD, Muthoot Finance 

“We welcome the RBI’s stance to keep key policy rates unchanged and maintain ‘accommodative’ stance as long as necessary. RBI’s monetary policy stance today suggests that the RBI will follow a more calibrated approach towards policy normalisation. The government in its recent budget gave major thrust to capital spending, promoting a digital economy and support MSME sector. We are hopeful and optimistic about broad based economic revival in 2022 as both the RBI and the government are working together to revive and sustain growth on a durable basis post the challenges posed by the pandemic. We welcome the RBI’s stance of enabling better infrastructure for MSME receivables and extension of on-tap liquidity window for contact-intensive sectors. The pandemic led to many individuals, MSMEs resort to gold loan financing to meet their short term credit requirements, and as overall economic demand further revives in 2022 we are optimistic that this will lead to continued demand for gold loans. We will also look forward to continued policy support from both the government and the RBI for the MSME sector.”

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