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Below is Reaction on Monetary Policy by Mr. Mohit Ralhan, Managing Partner of TIW Capital group

“RBI has maintained the accommodative stance prioritising economic growth and recovery amidst the global concerns on rising inflation. The good news is that inflation in India looks relatively under control with unchanged CPI inflation forecast of 5.3% for FY-22 and projection of 4.5% for FY-23. Inflation is expected to peak in the current quarter and ease in the second half of FY-23. Till the time inflation remains below RBI’s forecast, the focus will remain on supporting growth. Further, RBI has been proactively managing liquidity through VRRRs and there are no concerns on the liquidity side. Overall, the commentary on economic growth, increasing strength of PSU banks’ balance sheet, financial stability and liquidity is quite positive and RBI has reconfirmed its commitment to protect domestic markets from the impact of global macroeconomic events. The Indian market is expected to respond positively to RBI’s announcements.”

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