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RBI Monetary Policy: RBI April monetary policy Expect status quo on rates

Wednesday, April 7, 2021

/ by mansuralisaha


 
The News Cover: we are here to understand what to expect from our best moderate policy the outcome of which would be known on the 7th of April and RBI monetary policy begins on the 5th of April in fact the etna poll does suggest that rbi is most likely to maintain a status quo,

in terms of rates again during the April monthly policy however the entire commentary in terms of the growth inflation trajectory along with the commentary in terms of the liquidity management and the contours of RBI monetary policy normalization would be the key focus areas to be watched out for in terms of the overall commentary we have already seen rising to covet cases leading to uncertainty in terms of growth trajectory rps commentary. 

here would be important along with the fact that we are already seeing cost-push pressures putting a lot of pressure in terms of the overall trajectory of the core inflation so our base commentary both in terms of growth inflation dynamics would be fairly important rbi most likely is going to continue to be supportive of growth. 

according to most the economist and quite a lot of economists also do believe that rbi would be retaining the FY 22 growth forecast of 10.5 percent however what we should be watching out for would rbi be revising the inflation forecast 

there some of the economists do expect some upward revisions as the cost-push pressures are certainly going to pose a good amount of threat in terms of the overall trajectory of the core cpi so the government of India has retained the two to six percent inflation trajectory band and rbi also wanted that government retains 

the same band so yes our base commentary, here would be very important rbi is also likely to ensure that ample liquidity stays in the system and liquidity management tools the use of the liquidity management tools the commentary here would be important along with the fact that how and when would rbi start the monetary policy normalization 

overall summon Chakraborty of city group does expect that NPC is likely to remain abundantly cautious in terms of growth and would be supportive of growth and also they state that the focus would be in terms of liquidity management and forward guidance jp morgan Sergey chenoy also does believe that cost-push pressures pose 

the biggest risk in 2021 and trajectory of the core inflation would play a key role in terms of monetary policy normalization in India besides this of course watch out for the rps commentary in terms of loan more attorney and the commentary in terms of how would rbi ensure a smooth ensure smooth management of the huge government borrowing of rupees at 12 lakh crore 

so far the bond yields did rise to six point four six-point two-four percent at a ten-month high just in the month of march and bond yields have been hovering over the six percent mark so yes our base commentary here in terms of the smooth management of the government borrowing again would be fairly important

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