RBI's Monetary Policy Key Takeaways - Focus On Managing Liquidity For Growth: KRChoksey

The Reserve Bank of India (RBI) logo is displayed on a wall inside the central bank’s regional headquarters in New Delhi, India,  (Photographer: T. Narayan/Bloomberg). 

RBI's Monetary Policy Key Takeaways - Focus On Managing Liquidity For Growth: KRChoksey

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KRChoksey Research Report

Key highlights -

  • The Reserve Bank of India maintained status quo on the rate and stance unanimously.

  • The repo rate remains at 4% and stance at accommodative.

  • It maintained its policies and strategies to manage the monetary tools to manage growth.

  • It reduced growth outlook and increased inflation forecast.

  • It expanded benefits for micro small and medium enterprise across various institutions.

Other measures:

  • On tap liquidity of additional Rs 15,000 crore for contact intensive sectors. Banks will be eligible to park their surplus liquidity up to the size of the Covid-19 loan book at 40 basis points higher than the reverse repo rate.

  • To expand the threshold of small and medium enterprise from Rs 25 crore to Rs 50 crore for restructuring benefits.

Click on the attachment to read the full report:

KRChoksey Research_RBI Monteray Policy_June 2021.pdf

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This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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