RBI Monetary Policy: ‘On Tap TLTRO’ scheme extended till 30 September, 2021

“As expected the MPC has retained the policy rates and stance. Given the inflation being within the acceptable range and considering the policy support required, this decision of the MPC provides relief. The retention of the growth estimates at 10.5% is heartening but given the uncertainty because of the second wave, these estimates could be under stress during the next meeting. The inflation estimates for the FY are also within the range of 2 to 6%. However, any supply constraints due to the second wave could lead to inflation breaching the range,” commented Divakar Vijayasarathy, founder and managing partner, DVS Advisors LLP.