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Below is quote on RBI Monetary Policy reaction By Mr. Raghvendra Nath, MD, Ladderup Wealth Management

On expected lines, RBI has kept the policy rates unchanged and has maintained its accommodative stance. The key drivers behind the policy review announcement today have been controlled CPI inflation, which RBI expects shall moderate in the coming quarters, and the RBI’s support to the Economic recovery. The RBI continues to maintain high liquidity in the banking system which has helped in keeping interest rates at moderate levels across all categories of lending. We are already seeing the benefits of low interest rates, in housing demand; in retail credit growth and thereby consumption as well as in improved profitability of corporates . We also expect that interest rates shall remain unchanged for the next 3 to 6 months as Economic growth shall continue to dominate the policy objectives.

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