RBI Monetary Policy Review - More Dovish Than Expected: Motilal Oswal
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Motilal Oswal Report
The Reserve Bank of India's Monetary Policy Committee decided to keep policy rates unchanged – the repo rate at 4%, the reverse repo rate at 3.35%, and the marginal standing facility at 4.25% – as well as maintain its accommodative stance.
Just like in the previous policy statement of August 2021, the decision on rates was unanimous, but that of keeping the stance unchanged was decided based on a 5:1 majority, with Prof. Jayanth R. Varma being the only one expressing his reservations.
Inflation projections were revised down to 5.3% in FY22, from 5.7% targeted earlier, in line with our expectations.
The growth forecast, on the other hand, was kept unchanged at 9.5% YoY for FY22 (higher than our expectation of 8.8%).
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