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Below are View on RBI policy expectations By Ravi Subramanian, MD & CEO, Shriram Housing Finance

RBI is likely to maintain an accommodative stance until normalcy returns, a lot of which depends on vaccination rates where India is far behind advances economies. There is a re-opening-led demand revival and that is probably exerting upward pressure on inflation, and pushing prices above RBI’s tolerance band. The monetary reaction function however is expected to hinge more on growth revival and growth remaining sustainable, which is likely to take another 6-8 months at least. An accommodative stance will benefit the home loan market and demand for home loans which has been growing by close to double digits is likely to get stronger.

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