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Below is Statement on RBI Monetary Policy by Mr Anand Varadarajan, Director, Acit C Mehta Financial Services Ltd.

Monetary policy committee has acted in line with the expectations given the tighter monetary policies from the central banks globally. After the continuous rate hikes from the Fed, even the European Union has increased policy rates last month after a gap of 11 years. The rate hike will help take pressure off the rupee and let the CAD remain at manageable levels. Important point to note is that RBI believes that the inflation has peaked which leaves room for monetary action and this has been clearly stated that it will be open to conduct two-way fine-tuning operations to manage liquidity in the system and to support growth.

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