Mr. Rajiv Sabharwal, MD and CEO, Tata Capital on the RBI's Monetary Policy announcement today
(Time Zone: Arizona, USA)
- RBI chooses to pause rates and continues with the accommodative policy stance. The growth forecasts appear to be encouraging and the economic activity momentum will be further consolidated. RBI will monitor the impact of the Covid - 19 situation given the recent resurgence of cases across the country.
- The inflation projections will depend on food and fuel prints but overall the risks are well balanced. RBI's assurance of providing comfortable liquidity will help maintain efficient rate transmission & the corporate bond market will be buoyant
- The Central Bank's decision to extend the TLTRO facility for another 6 months is a step in the right direction. Further, the on-lending facility by NBFCs to Agriculture, MSME and Housing (classified as Priority Sector Lending) along with the liquidity support through NABARD, NHB & SIDBI will efficiently channelize credit to these productive sectors.
Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.