Quote on Monetary Policy Committee by Dr. Poonam Tandon, Chief Investment Officer at IndiaFirst Life Insurance Company
Below the Quote on Monetary Policy Committee by Dr. Poonam Tandon, Chief Investment Officer at IndiaFirst Life Insurance Company
The Monetary policy was on expected lines on status quo on rates and no change in stance, the focus of the MPC to bring the inflation to 4% on a sustainable basis. The RBI Governor has stated that they will be nimble-footed with respect to liquidity. The GDP has been pegged at 7% for the year and the inflation at 4.5%. This careful stance reflects concerns over potential inflationary pressures arising from volatile food prices, recent upticks in oil prices, and robust economic growth. The policy also gives importance to growth while acknowledging inflationary risks from rising oil prices and volatile vegetable prices. The Governor also stated that the Rupee has been one of the most stable currencies which reflects India’s sound macroeconomic fundamentals, financial stability and improvements in the external position. All in all, it is a rational policy with a focus on growth and price stability.
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