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Below is RBI Monetary Policy Reaction by Mahesh Singhi, Founder & MD of Singhi Advisors (Global M&A advisory firm)

"RBI MPC has hiked its benchmark repo rate by 25 bps in line with market expectations but most importantly, has continued its stance at “withdrawal of accommodation”, maintaining a hawkish tone . On the growth front, RBI appears to be relatively optimistic by forecasting GDP growth at 6.4%,. It also believes that the global growth environment has slightly improved with the latest global data indicating higher prospects of a soft landing. The liquidity in the system is expected to remain slightly in surplus with most liquidity enhancement measures of the pandemic period having been withdrawn. RBI expanding the scope of the Trade Receivables Discounting System (TReDS) is a positive for MSMEs in the export segment. It will encourage financing/discounting of payables of buyers irrespective of their credit ratings"

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