Senior leadership at Essar share their views on RBI’s Monetary Policy Report – September 2022

“MPC’s decision announced today of hiking repo rate by 50 bps to 5.9% was broadly along the expected lines. With the financial markets and the global economy facing a turmoil due to various geo political situations and alarming high inflation levels. With liquidity withdrawal measures and interest rate hikes, the global economic landscape continues to be volatile and developments there will have a bearing on developing market. However, RBI’s stand on policy this time with the focus remaining squarely on inflation will help alleviate market sentiments. Despite global headwinds, RBI’s optimism on growth has been significantly inclined towards impressive performance of the economy in the last few months. India is placed at a much better level as against other high inflation economies projects an progressive economic situation.”

Sanjay Palve
Senior Managing Director, Essar Capital

“The RBI’s decision of bringing about the fourth straight increase in the repo rate in the current cycle was in line with market expectations. The 50bps repo rate hike comes on the back of persistence of high inflation and the continued upside risks. The tone of the policy continues to remain hawkish and is expect to stay unchanged to ensure a stable policy rate, especially with the current global tightening. At some point RBI has to be cognizant of the fact that targeting inflation will slow down growth especially in the infrastructure field. This inflation is due to disruption caused by war and energy rates are already coming down. The domestic economic activities are resilient and have picked up. Some green offshoots are visible in urban demand and rural market is also catching up. Exports recorded a growth of 24.5 per cent during April-June 2022, indicating strengthening domestic demand.”

Rajiv Agarwal
Operating Partner (Infrastructure), Essar
Managing Director, Essar Ports