Saturday, February 10, 2024

Monetary Policy well Balanced

 RBI’s Monetary Policy 2023-2024.



Kudos to RBI for maintaining the status quo in keeping all the monetary policy rates VIZ REPO, SDF and MSF unchanged at 6.5%,MSF at 6.25% and 6.75% respectively well in tune with the fiscal policy  as per the interim budget and projecting the GDP growth at 7% for the financial year 2024-25 and inflation under manageable level well with in the band 4 and 6% . No doubt this nimble  policy announcement in the midst of continuing global uncertainties  in political and economic scenarios is not only encouraging but also reflecting on the strength of the domestic  political stability and economic resilience demonstrated along with social and technological advancements despite some issues cropping up on regulatory compliance here and there. The rationalisation of interest rates policy expected to cover various charges and introduction of measures to bring in a level playing field among various financial institutions including fin techs will definitely bring in the much needed financial stability and sustenance of credibility in the compliance system. The transmission of the monetary policy if done effectively as per RBI's expectations, the liquidity issue will definitely be taken care of. Overall the monetary is well balanced and very promising to support the  economic growth plan envisaged by the Government. 


T V G Krishnan        


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