Monetary Policy to trigger growth, says Ajay Bagga; extending MSF for 6 months is good too, he tells Anil Singhvi

The Reserve Bank of India's (RBI) February Monetary Policy Committee (MPC) announcements on Friday are growth oriented, Market Expert Ajay Bagga said to Zee Business Managing Editor Anil Singhvi. The monetary stimulus has been retained, and the policy rates have been kept unchanged while keeping the stance of RBI accommodative, he added

Monetary Policy to trigger growth, says Ajay Bagga; extending MSF for 6 months is good too, he tells Anil Singhvi
The RBI Governor Shaktikanta Das today left interest rates unchanged. Repo rate is currently at 4 pct. The banking regulator has also kept the reverse repo rate unchanged at 3.5 per cent
Written By: ZeeBiz WebTeam
Edited By: Harish Dugh
Updated: Fri, Feb 05, 2021
12:44 pm
New Delhi, ZeeBiz WebDesk
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The Reserve Bank of India's (RBI) February Monetary Policy Committee (MPC) announcements on Friday are growth oriented, Market Expert Ajay Bagga said to Zee Business Managing Editor Anil Singhvi. The monetary stimulus has been retained, and the policy rates have been kept unchanged while keeping the stance of RBI accommodative, he added.  

He said that the growth projections of the RBI estimated at 10.5 per cent for the next financial year indicate strong recovery in the economy. The capacity utilisation has increased from 47 per cent in the previous quarter to 63 per cent in this quarter which is another good indication. 

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The Purchasing Managers Index (PMI) data is coming around 56-57 per cent and the composite PMI for December is also good. 

He further said that the MSF (Marginal Standing Facility) being extended for next 6 months is another good step by the banking regulator.

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He said that this is an excellent policy announcement where several issues have been addressed suitably. 

The provision of opening of GILT accounts for retail investors is a good step, he further said.  

The RBI Governor Shaktikanta Das today left interest rates unchanged. Repo rate is currently at 4 pct. The banking regulator has also kept the reverse repo rate unchanged at 3.5 per cent. 

Das said that the GDP is likely to be at 10.5 per cent for FY 21-22. He said that while making his bimonthly Monetary Policy speech. The Governor further said that the CPI inflation is estimate at Q4 FY21 - 5.4 per cent. For FY21- 22 H1 the CPI (Core Inflation) is estimated at 5.2-5 per cent. 

The RBI Governor also said that its accommodative stance will continue. 

The Governor today said that there has been a marked improvement in the growth outlook of the country. He attributed it to the coming of the coronavirus vaccine. He said that it was the need of the hour to support the growth. He further said that the domestic businesses have also shown significant improvement.

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