Thank you readers! Here is a list of all the key announcements made by the RBI Governor Shaktikanta Das today:

Apr 7, 2021 2:10 PM

Perspective on the ‘Monetary Policy’ by Rajani Sinha, Chief Economist & National Director – Research, Knight Frank India

“The RBI has taken reassuring steps to infuse additional liquidity into the housing sector through the interventions of increased financing to National Housing Bank and extension of priority sector tag for bank funding to NBFCs for housing loans.

However, given the inflationary concerns in recent months, RBI has maintained the status quo on key policy rates. At a time when rising second wave of COVID infections and subsequent lockdowns are derailing economic momentum, RBI interventions will help maintain adequate liquidity as well as prevent hardening of yields in bond market. These measures will ensure economic stability as well as keep real estate sector stay afloat during such precarious times. Hopefully, benign retail inflation on account of better monsoon and easing of crude oil prices, coupled with accommodative stance would translate into lowering of policy rate in near future.”

Apr 7, 2021 2:09 PM

Views on RBI Policy: Dhiraj Relli, MD &CEO, HDFC Securities

“The outcome of the MPC meet was on expected lines as far as repo rates and stance are concerned. However, the announcement of secondary market G-sec acquisition programme (G-SAP 1.0), where the RBI will commit upfront to a specific amount of open market purchases of government securities with a view to enable a stable and orderly evolution of the yield curve amidst comfortable liquidity conditions, was a positive surprise. This shows the resolve of the RBI to keep Gsec rates under check despite the large borrowing program. The endeavour will be to ensure congenial financial conditions for the recovery to gain traction. The large amounts committed in Q1 and in April show the seriousness of the RBI in implementing the Gsec program.

The markets have reacted well to this measure as this will result in rates not rising and, in fact, easing down for businesses. The impact of the MPC announcements however will wither away in a couple of days time and the markets will keep responding to other triggers including Covid progress and corporate results.”

Apr 7, 2021 1:57 PM

Rohit Poddar, Managing Director, Poddar Housing and Development Ltd on RBI's MPC announcement

“The first RBI policy of FY’22 with its continued accommodative stance to maintain liquidity surplus in the market can be viewed as being pragmatic. Though the RBI moves away from time-based guidance, it has prudently provided timelines to its liquidity-focused measures providing cushioning to the financial markets.

The equity markets will cheer with the announcement on RBI’s Government Securities Acquisition Programme. This will ensure government borrowing at a low cost and be able to address pandemic-related adversities from both economic and healthcare aspects.

From a real estate point of view, an additional Rs.10,000CR for NHB for fresh lending will create a seamless environment to sustain the business operation. As a major part of credit borrowing happens from NBFCs in the real estate sector, the extension provided till 30th September will boost liquidity even further.”

Apr 7, 2021 1:46 PM

Quote on RBI MPC by Jimeet Modi, Founder & CEO, Samco Group

"The RBI continues to maintain their accommodative stance along with a dovish outlook, which hasn’t been much of a surprise to the Street. The repo rate along with the GDP forecast of 10.5% for FY22 was inline with expectations and infact the bond market cheered with a dip in yields post the announcement. The GSec Acquisition Programme of Rs. 1 Lakh Cr for this quarter was the clincher in the entire speech, however, there was only little the MPC could do given the uncertainty on the rising number of cases and vaccination drive. While their attempts to flatten the yield curve and enable sufficient liquidity through bond purchases in the system have worked in the economy’s favour so far, it will have to be seen how prompt the RBI remains if the condition worsens given the renewed lockdowns in a few states in India. The policy lagged aggressiveness and was more balanced this time, nevertheless the efforts do seem positive for the time being."

Apr 7, 2021 1:39 PM

GSAP is not a one off measure, there will be more going ahead: RBI Guv

Reserve Bank of India (RBI) governor Shaktikanta Das on Wednesday said that the G-Sec acquisition program (GSAP) is in addition to normal instruments in their toolkit for liquidity management. "It is not a one-off measure. There will be more going ahead," he said while addressing a press conference. "Our signals, actions and communication must be read together. G-SAP is different from the usual OMO calendar. We have conducted total OMOs of Rs 3.13 lakh crore in FY21," he added. RBI has decided to put in place a secondary market Government Security Acquisition Programme (G-SAP) 1.0 for orderly evolution of the yield curve in FY22. More here

Apr 7, 2021 1:29 PM

RBI has ensured liquidity via TLTRO extension: PNB’s SS Mallikarjuna Rao

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) on Wednesday kept the benchmark repo rate unchanged at 4 percent in the April policy while maintaining an accommodative stance for as long as necessary amid rising inflation. Reacting to the policy, SS Mallikarjuna Rao, MD and CEO at Punjab National Bank (PNB) said that overall the policy is on expected lines. He also expects demand to come back once COVID recedes. “Overall it is a good policy, on expected lines to continue the liquidity in the market, continue the supply side in the market. We will have to wait and see how the pandemic impact will recede more effectively to create the demand,” he said. More here

Apr 7, 2021 1:20 PM

RBI moving away from time-based guidance is justified: SBI's Soumya Kanti Ghosh

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) kept the repo rate unchanged in the first bi-monthly monetary policy meet for the financial year 2021-22, governor Shaktikanta Das…

Apr 7, 2021 1:09 PM

Gaurav Awasthi, Senior Partner, IIFL Wealth Management on RBI Policy

The RBI decision to hold rates was on expected lines. The key was the government's comments on holding the policy accommodative as long as necessary rather than to a time-bound limit to support the economy . The G-Sec Acquisition Program will also lend support to the yields, which had risen substantially under pressure from rising government borrowings.

Apr 7, 2021 1:00 PM

Post Policy Conference

"At the moment growth is not undermined due to rising COVID-19 cases. So far, current surge in infections will not impact growth as much as it did last year. Guidance on growth seems appropriate. At this point, have made reasonable assumptions," sayd Shaktikanta Das.

Apr 7, 2021 12:52 PM

Post Policy Conference

"So far, current surge in infections will not impact growth as much as it did last year. Guidance on growth seems appropriate. At this point, have made reasonable assumptions," said Shaktikanta Das.

Apr 7, 2021 12:42 PM

Post Policy Conference: Growth is of paramount importance at the current juncture. Mindful of the overall liquidity situation in the market, says Shaktikanta Das

Apr 7, 2021 12:31 PM

Post Policy Conference: To exit accommodative stance, will have to wait for the situation to arise, says Shaktikanta Das

Apr 7, 2021 12:24 PM

Post Policy Conference: GSAP will run alongside our normal liquidity operations, says RBI Deputy Governor Michael Patra

Apr 7, 2021 12:20 PM

Post Policy Conference: Addressing overall liquidity situation in market to ensure orderly evolution of yield curve, says Shaktikanta Das

Apr 7, 2021 12:16 PM

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