Nitin Sharma, head of research, India Fidelity International
The Monetary Policy Committee (MPC) action of leaving the key interest rates unchanged today was largely on the expected lines. The Reserve Bank of India’s (RBI) top priority remains at reviving India’s economic growth. The strong indication from the RBI to maintain an accommodative stance on interest rates as long as it’s necessary, is a positive development. RBI is likely to keep a close watch on inflation, even if they think it’s driven by temporary supply shocks. We expect the RBI to have greater focus on driving credit flow into the system going ahead, rather than on benchmark rates.
The quote was originally published in Fortune India in October 2020.
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