365telugu.com online news,Delhi,4thJune,2021:The RBI policy was largely on expected lines from the macro-economic perspective – maintained status quo on policy rates and keeping accommodative stance. CPI inflation is expected to remain in check for 1HFY22 largely due to the base effect. However, rising input prices could see inflation inching upwards in coming quarters. GDP forecast has also been cut to 9.5% in FY22 vs. 10.5% earlier factoring in the impact of the second wave. The central bank will continue with its proactive and pre-emptive approach to ensure the economy returns to growth and keeping ample liquidity to support growth – the focus is now shifting to equitable distribution of liquidity in the real economy.
Other measures include an on-tap liquidity facility of INR 150bn at repo rate for stressed sectors, allowing banks to park surplus liquidity with RBI at 40bp higher than the existing reverse repo rate, extending the eligibility restructuring limits for MSMEs from INR 25cr to INR 50cr and liquidity worth INR 160bn to SIDBI for on lending. GSAP 2.0 announced at 1.2 lakh cr in Q2, which is higher than G-SAP 1.0 and also includes State Development Loans (thus compressing the spreads of SDLs). Overall, RBI remains committed to growth and ensuring adequate liquidity in the system.”