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Below is quote on RBI Monetary Policy reaction By Mr. Niraj Kumar, Chief Investment Officer, Future Generali India Life Insurance Co. Ltd

“MPC has gradually  embarked on the liquidity normalization process. So far,  it has done a commendable job in terms of not succumbing to the incumbent global and domestic concerns clouding the markets with respect to rising commodity inflation and impending Fed taper and continues to stay cautious and vigilant and not change the course of monetary policy. While the withdrawal of GSAP may be perceived slightly negative  by the bond markets, MPC’s reassurance of resuming GSAP if warranted and continuation of OMO’s and Operation twist should allay the supply concerns of the market. While MPC has starting walking on the path of liquidity normalisation process by gradual increase in the quantum and tenure of VRRR for absorption of excess liquidity, it has explicitly maintained its dovish stance on maintaining comfortable liquidity until growth revives on a sustainable basis. Overall,  a Growth supportive and balanced policy amidst global dislocations due to supply chain challenges & recent surge in global energy Prices.”

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