The accommodative policy stance by RBI reflects confidence that inflation projections would be in line with earlier projection. And in the backdrop of the government intervention on supply side of food products, reduction in excise duty and VAT on petroleum products, further supported by benign metal outlook, RBI rightly maintained an accommodative policy stance as continuing support to the economy. GDP is picking up but still not self-sustaining and needs policy support.
We welcome the policy stance as well as forward guidance on policy by the RBI which we believe would further spur economic activities and help bring it back to pre-pandemic level.
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