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Comments on RBI Monetary Policy

Published in Banking & Finance Friday, 06 August 2021 19:42

Comment from George Alexander Muthoot, Managing Director at Muthoot Finance on RBI monetary policy.

“We welcome RBI's unchanged view of acommodative stance, commitment to maintaining adequate liquidity in the system to fuel growth even as inflation has inched up and is likely to remain sticky near-term. Extended period of historically low interest rates will stimulate credit and economic growth. This benign environment is necessary and positive for supporting the broader economy, particularly the SMEs, small businesses, shopkeepers and traders who have been most impacted by the second COVID wave and experienced difficulty in restarting business activities with traditional banking channels. With business activities having resumed pan-India and vaccination coverage also progressing nicely across, we are seeing lifting of market sentiment and demand revival going into the upcoming festive season.”

 

Comment from Mr. Umesh Revankar, Vice Chairman & MD, Shriram Transport Finance.

 

“RBI's monetary policy was along expected lines with key rates retained for the seventh straight time and accommodative stance maintained. The Governor acknowledged that at this stage, continued policy support from all sides - fiscal, monetary and sectoral is required to nurture the nascent recovery. I concur with this stance as rural and semi-urban demand which has picked up from June is showing good revival and we need to prioritise pro-growth measures even as uncertainties like possibility of a third COVID wave linger. Extension of TLTRO by the central bank till December 2021 will ensure adequate liquidity support to the system while benign interest rate environment, normalised supply chains and improved business activities that are gaining momentum since reopening post second wave augur well for growth of our sector and broad-based economy.”

 

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