RBI Monetary Policy: Industry Reactions - Funds
Sandeep Bagla, CEO Trust AMC: RBI has maintained accommodative stance, keeping all rates unchanged, vowing to keep conditions as supportive as possible to revive growth. Impact of second wave on inflation could be handled through supply side measures. The policy bodes well for financial assets as well as the real economy, growth and employment as RBI has again stated its resolve to maintain conducive conditions to support durable growth. The policy is pragmatic, at the same time progressive and preemptive in its approach.
RBI Monetary Policy: Industry Reactions
Anish Mashruwala, Partner, J Sagar Associates: The RBI Governor’s statement continued the cautionary, caliberated and need-of-the-hour stance of the RBI. Given the clear impact of COVID-19’s second wave on non-urban areas, the focus on the wider local economy, especially the MSME and the mom and po shops which are still vital to the overall fabric of India, has been a major focus of the proposed measures. Having addressed the creation and supply of liquidity, the RBI has consciously considered the need to ensure equal distribution of credit and liquidity to the particularly affected sectors. The specific measures, namely liquidity to the contact intensive businesses which have faced the largest brunt of the pandemic, the expansion of the borrower coverage by doubling the maximum exposure threshold to Rs 50 crores and the additional liquidity via SIDBI to cater to these needs, are all welcome to support the overall growth of the Indian economy. In that sense today’s statement reflects the much needed moral compass of a national institution in times of a pandemic.
RBI Monetary Policy: Industry Reactions
Jimeet Modi, Founder & CEO Samco Group: Exactly a year ago, RBI had cut the repo rate down to 4% from 5.15%, pre-pandemic levels and the rates have remained unchanged till now. India’s accommodative stance continues to remain inline with global peers such as Fed and ECB and this times policy was also aligned with market expectations. The spectrum of forecasts both in terms of GDP and inflation were balanced out and remained more or less on the optimistic side. The RBI has indeed given a helping hand, in whatever way possible to boost liquidity for MSMEs, the hardest hit space in this pandemic. Support to the contact intensive sectors is definitely a move in the right direction although the relief package could have been higher to hold the bottom of the pyramid from losing ground. Various other decisions in terms of opening the debt markets to FPIs and facilitating a Rs. 1.2 Lakh Cr in Q2FY22 for GSAP2.0 will aid to safeguard our economy from contraction and keep markets buoyant.
RBI Monetary Policy: Industry Reactions - Funds
Sandeep Bagla, CEO Trust AMC: RBI has maintained accommodative stance, keeping all rates unchanged, vowing to keep conditions as supportive as possible to revive growth. Impact of second wave on inflation could be handled through supply side measures. The policy bodes well for financial assets as well as the real economy, growth and employment as RBI has again stated its resolve to maintain conducive conditions to support durable growth. The policy is pragmatic, at the same time progressive and preemptive in its approach.
EXPLAINED | The relationship between Monsoon and Inflation
The south-west monsoon hits Kerala on June 3, the first normal rainfall in three years after two above-average monsoon rains in the last two years. It is welcome news for an economy dented by a second…
RBI Monetary Policy: India's forex reserves are in striking distance of $600 billion
The Reserve Bank of India announced during its Monetary Policy announcement on June 4 that India's forex reserves have risen to $598 billion. "The strength of financial system is crucial for fighting against the pandemic. The exchange rate is stable despite global spillovers. Forex reserves have risen to $598 billion. We are within striking distance of reaching $600 billion on Forex Reserves," RBI Governor Shaktikanta Das noted. Read more here
WATCH: RBI Monetary Policy - Governor Shaktikanta Das' Press Conference LIVE
RBI Monetary Policy: CPI inflation projection rate at 5.1 percent for 2021-22
The Reserve Bank of India Governor Shakuntala Das announced a projection for Consumer Price Index (CPI) inflation at 5.1 percent for FY 2021-22. Das pegged the quarter wise inflation projections for FY22 at 5.2 percent in Q1, 5.4 percent in Q2, 4.7 percent in Q3 and 5.3 percent in Q4, with risks broadly balanced. Normal monsoon and business resilience can provide a tailwind to economic recovery. With a normal monsoon, the comfortable buffer should keep food prices comfortable, he said. However, RBI noted that rising crude prices and higher logistic costs can push up prices and core prices may remain elevated. "Global demand condition is expected to improve with fiscal stimulus and higher vaccination," Das noted. Read more here
RBI Monetary Policy: Status Quo, 12 Rate-sensitive Stocks That Can Give 15-30% Return
The central bank has maintained an accommodative stance but there are opportunities in the rate-sensitive space that investors can explore.
RBI Monetary Policy: RBI Governor Shaktikanta Das announces G-SAP 2.0 of Rs 1.2 lakh crore in Q2 FY22, additional purchase under current round
The Reserve Bank of India (RBI) Governor Shaktikanta Das on June 4 announced that another round of Government Securities Acquisition Program (G-SAP) worth Rs 40,000 crore will be conducted on June 17. Additionally, G-SAP 2.0 of Rs 1.2 lakh crore will be conducted in Q2 FY22. “Auctions under G-SAP 1.0 have evoked keen interest from market participants. GSAP 1.0 evoked keen interest with bid-cover ratios of 4.1 and 3.5 in two auctions. We expect the market to respond positively to G-SAP 2.0,” Das said. Read more here
RBI Monetary Policy: RBI announces on tap liquidity window of Rs 15,000 crore for contact-intensive sectors like hotels and salons
RBI governor Shaktikanta Das on June 4 announced additional measures to help ailing businesses. RBI announced an on tap liquidity window for contact intensive sectors. "In order to mitigate the adverse impact of the second COVID wave on contact intensive sectors, a separate liquidity window of Rs 15,000 crore is being opened till March 31, 2022, with tenors of up to 3 years at the repo rate," Das said.
Under the scheme, banks can provide fresh lending support to hotels restaurants tourism, travel operators, adventure and heritage facilities, aviation ancillary services (ground handling and supply chains) and other services that include private bus operators, car repair services, rent a car services providers, event/conference organisers, spa clinics and beauty parlours and saloons. Read more here
RBI Monetary Policy: Real GDP growth projected at 9.5% in 2021-2022, says Shaktikanta Das
RBI Governor Shaktikanta Das announced that RBI expects real GDP growth at 9.5 percent in 2021-2022 consisting of 18.5 percent in first quarter, 7.9 percent in the second quarter, 7.2 percent in the third quarter and 6.6 percent in the forth quarter of 2021. The RBI had earlier forecasted 10.5 percent GDP growth for 2021-2022. For Q1, RBI had expected 26.2 percent, much higher than the now revised figure. RBI had also lower forecast for Q2 at 7.9 vs 8.3 percent forecasted earlier. The central bank had pegged Q3 growth at 5.4 percent and Q4 at 6.2 percent, both lower than the now revised growth figure. Read more here
RBI Monetary Policy 2021 Live Updates | MPC keeps status quo, continues accomodative stance: Governor... - Moneycontrol
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