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Below are Perspective on todays RBI Announcement by Ms. Rajani Sinha, Chief Economist & National Director – Research, Knight Frank India.

“The battle with COVID-19 has prolonged over a year now and while the country was coping well until early this year, the second wave of infections in March has translated into significant loss of lives. Presumably on economic output, the dent will depend on the timeline of this wave and associated regional lockdowns. Hence, proactive measures by the RBI are welcome and reassuring. Expansion of liquidity window particularly to the healthcare sector is a need of the hour. Besides, additional liquidity window and resolution mechanism for loan restructuring for small and medium business will cement their position to cope up with the adverse demand conditions created by this more severe wave of pandemic. We believe that the central bank will keep its guard on in the ensuing period and take steps as warranted by the evolving on ground economic situation.”

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