Monetory Policy

Industry Reaction on RBI's Monetary Policy of August 2021

Coming in support of this, Prithviraj Srinivas, Chief Economist, Axis Capital said, “The MPC has kept policy rates on hold as expected. The only major move was an increase in Variable Rate Reverse Repo (VRRR) limits which was widely expected. However, the governor was quick to point out that VRRR limit increase does not indicate a change in monetary policy stance. We expect the timing of first policy rate increase in the future to coincide with confidence that vaccinations provide adequate protection against relapse.”