Mr. Rajiv Sabharwal, MD and CEO, Tata Capital on the RBI's Monetary Policy announcement - Feb 2021

RBI once again chooses to pause rates and continues with the accommodative policy stance which will aid growth in the economy. The monetary policy, post the union budget is a true indicator of the government and RBI's pro - investment resolve to work towards helping the economy bounce back stronger.

The leading indicators which include resilient growth and softening of inflation are positive and this gives the RBI confidence to start the gradual unwind of the cumulative easing of steps.

Inclusion of NBFC for on tap TLTRO, 2-Phased CRR restoration, extension of MSF by 6m, SLR holdings in HTM dispensation are reflective of RBIs intent of liquidity management.

Allowing direct retail participation in Govt Securities markets is a welcome move which broadens the investor base. Also, from a retail perspective this opens up an additional investment avenue.

Source : Equity Bulls

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