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Below is Reaction on Monetary Policy By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"The monetary policy announcements came exactly on expected lines - continuation of the accommodative monetary stance, status quo in policy rates, maintaining the FY GDP at 9.5% and upward revision in FY 22 CPI inflation rates. The upward revision in CPI inflation rate to 5.7% from 5.1% earlier reflects the higher inflation prints in recent months. But the MPC believes that the higher inflation trend is transitory since it is caused by supply-side constraints. The Governor again reiterated that the RBI's priority would be "to promote growth within the framework of financial stability". The RBI is rightly concerned that any departure from the present pro-growth monetary policy may " kill the nascent and hesitant recovery. " The communication from the central bank augurs well for the continuation of the growth impulses in the economy"

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