The Reserve Bank did not announce any change in interest rates during its monetary policy review. There has been no change in the repo rate. It remains unchanged at 4 per cent as before. In fact, there is pressure on the Reserve Bank due to the continuous increase in the inflation rate. In such a situation, this pressure cut in interest rates could prove to be increasing. Many experts also believe that the RBI did not change the policy rates only under the pressure of inflation. Let us know what he said about RBI’s new monetary policy review.
Kumaresh Ramakrishnan, CIO-Fixed Income, PGIM India Mutual Fund
RBI has increased its target for retail inflation for this year from 5.1 per cent to 5.7 per cent. It has increased this target in view of supply side constraints and increase in raw material prices. RBI has also proposed to reduce the surplus liquidity from the liquidity which has reached Rs 8 lakh crore. A target has been set to increase the variable rate reverse repos i.e. VRRR from the current Rs 2 lakh crore to Rs 4 lakh crore. Keeping in view today’s policy review, our focus will continue on Banking, PSU, Corporate Bond and Dynamic Bond categories.
महेंद्र जाजू, Chief investment officer—fixed income, Mirae Asset
The Monetary Policy Committee did not recommend changes in key interest rates as inflationary pressures persist. Also, the committee has full focus on increasing the growth. The committee has estimated an increase of 50 basis points in the inflation rate, while the growth has been said to be 9.5 percent. Debt funds will benefit more from this decision of RBI not to increase the interest rate and they will be able to cope with any further rate hike.
विकास जैन, Senior Research Analyst. Reliance Securities
The status quo has been maintained by the Monetary Policy Committee. The repo rate remains unchanged at 4 and the reverse repo rate at 3.35 per cent. The growth forecast has also been kept at 9.5 per cent, as the economy is now in a better position than in the previous quarters. The inflation rate has been increased from 5.1 percent to 5.7 percent. For the time being, we believe that the policy stance of RBI will be growth-promoting. In such a situation, the market environment will be positive in the medium term.
RBI MPC: No change in repo rate for the seventh time in a row, RBI revises inflation and growth estimates
Ravindra Sudhalkar, CEO- Reliance Home Finance
In view of the concern about the growth in the economy, the Monetary Policy Committee did not make any change in the interest rates. There is still concern about the possibility of a third wave of corona in the economy. Rising inflation is also a cause for concern. In such a situation, any cut in interest rates could make it difficult for growth. Governor Shaktikanta Das has expressed confidence about the growth of 9.5 percent but he believes that there is still a lack of demand in the economy. With the status quo on the part of RBI, the uncertainty on the home loan front has ended.