RBI likely to retain ‘accommodative’ stance towards lending rates: ASSOCHAM

New Delhi: Focus of the bi-monthly review of the credit policy by the RBI Monetary Policy Committee, is expected to be ensuring adequate liquidity into the system, retaining the policy stance as ”accommodative”, said ASSOCHAM Secretary General Mr Deepak Sood.

Mr Sood said, ”As Governor Mr Shaktikanta Das unveils the decision of the RBI-MPC tomorrow, the challenges of striking a balance between increased and continuous requirement of high liquidity, and taming retail inflation would be shared. In our assessment the current inflation should be a temporary phenomenon and would ease as supply disruptions resulting from Covid-19 related restrictions are getting resolved.”

The ASSOCHAM Secretary General said the RBI has done a commendable job in handling the situation arising out of the pandemic. It has reached out to a number of sectors like mutual funds, realty, NBFCs and MSMEs, besides the all-encompassing moratorium on loan repayments. At the same time, the financial stability and the bank balance sheets have been strengthened.

”While the cut in REPO rate may not be announced tomorrow, the accommodative stance should assure the industry and the market participants about the RBI’s commitment to keep the lending rates benign to give a continuous support to growth, especially in the post-Covid period,” Mr Sood said.