Monetary Policy - Oct 9, 2020 - Mr. Rajiv Sabharwal, MD and CEO, Tata Capital

- RBI continues to pause rates and monitor emerging trends & data points. The lead indicators are directing towards growth recovery as economic activity gradually gains momentum. Inflation dynamics are expected to pan out favourably. Supply chain stability will further ease inflation.

- RBI's assurance of providing comfortable liquidity will help maintain efficient rate transmission & Corporate Bonds will continue to be buoyant. In addition, this will also enable Banks and NBFCs meet the festive season credit demand effectively.

- The Regulator has once again brought ingenious solutions to the table such as rationalisation of risk weights for housing loans & on-tap LTROs for specific sectors. This clearly demonstrates RBIs steadfast resolve to supplement growth in the economy.

Source : Equity Bulls

Keywords