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View on RBI Monetary Policy by Upasna Bhardwaj, Kotak Mahindra Bank
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Below are View on RBI Monetary Policy by Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank
“Expectedly the RBI maintained status quo, attempting to maintain a fine balance between the risks to GDP and inflation. However, we believe that the increasing risks to inflation especially as the economic activity is picking up pace has prompted the MPC into taking liquidity normalisation measures ahead of our expectations. We expect additional liquidity normalisation measures like overnight VRRR, increased quantum of higher tenure VRRR in the months ahead before expecting a reverse repo rate hike in December.”
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