RBI Right To Stay Dovish for the Time Being
With the prospect of largescale dollar outflows that would force the RBI to sell dollars and suck up rupees, yields would go up in any case
RBI Right To Stay Dovish for the Time Being
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Dear Prudent Economics Editor,
Good articulation of the monetary policy with the objective to anchor inflationary expectations. Complete elucidation in the analysis signals towards RBI having made its effort to keep the economy from sinking further into its depression-like recession, pledging sufficient liquidity.
It is like unanimous voting on a bill in the parliament - Although, rarely seen nowadays. Providing the necessary support to the Govt of India allowing the economy to recover.
If I parse your argument of an unchanged policy stance then should I not say that the measure may lower unemployment, consumer sentiment shall improve with people's consumption & investment patterns in this quarter and the stock prices may climb. The accommodative 'Monetary Policy' announcement gives a ray of hope before the next MPC meeting due in the first week of April, 2022. Good decision taken by Mr Shaktikanta Das, RBI.
Time to observe outcomes until April, 2022.
Best regards,
Vandana