Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank
“RBI expectedly kept rates and stance unchanged. After the circulars on restricting offshore speculative activity and the recent de-escalation on the geopolitical front has provided some relief to INR providing room for RBI to assess the lasting impact on growth-inflation and the persistence of BOP deficit. We expect RBI to be squarely data dependent henceforth given the fluidity of the situation. Meanwhile, we expect RBI to monitor liquidity conditions closely and possibly introduce VRRRs to ensure the overnight rates graduate higher between repo and MSF rate.”
