‘RBI wants to ensure financial stability at all costs to support nascent recovery in economy’
By Dr. RASHMI SALUJA
Executive Chairperson, Religare Enterprises Ltd.
The first bi-monthly monetary policy for FY22 is on expected lines as RBI kept Repo rate unchanged.
The key takeaway is that the central bank has kept FY22 growth projection unchanged at 10.5% and exuded confidence that despite spurt in COVID cases, growth momentum can be sustained if the vaccination programme is speeded up and extended to wider segments of the population.
Another highlight is the announcement of a comprehensive G Sec buyback programme from the secondary market, which will give much needed assurance to bond markets, keep yields under check and allow for smooth completion of government's huge borrowing plan.
It is evident that RBI wants to ensure financial stability at all costs to support nascent recovery in economy and continue with its accommodative stance as long as required.