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Below are view on Pre- Monetary Policy December 2021 By Lakshmi Iyer, CIO – Debt & Head – Products, Kotak Mahindra Asset Management Company-

“As the cobwebs being to clear wrt policy making front, world central bankers are grappling with the debut of the Omicron variant of Covid virus! The path to normalisation has begun across the world, including India, and is less likely to stop for now. We therefore expect a reasonably high chance of 15/20bps hike in reverse repo rate – a start to reduce the gap between repo and rev repo rate. The policy stance may remain status quo and hinge on incremental developments in the near term. We expect VRRR as a tool to normalise liquidity to continue to gain momentum.”

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