Senior leadership at Essar share their views on RBI’s Monetary Policy Statement, 2022-23

“The RBI and government have done a splendid job in steering us past the effects of the pandemic and enabling a quick recovery of the Indian economy. As we look to move past the pandemic, we find ourselves amidst escalating geopolitical tensions and various sanctions which are adversely affecting the entire Global economy. The RBI has decided to maintain an accommodative stance and has kept the benchmark interest rates unchanged despite rising inflation, which seems to be a right call for now to boost growth of the economy. Inflation levels which again rose sharply in February due to elevated prices of crude oil are a cause of concern and the RBI decision to tweak its liquidity framework by introducing the standing deposit facility through which it will absorb surplus liquidity, is a step in the right direction.”

Sanjay Palve
Senior Managing Director, Essar Capital

“The RBI policy was largely on expected lines with key policy rates kept unchanged and maintaining an ‘accommodative’ stance despite the rising inflation. Recognizing the concerns around inflation due to elevated crude oil prices, RBI has taken the necessary precautions and remains mindful of anchoring these expectations. Normalisation of Liquidity Adjustment Facility (LAF) corridor to pre-pandemic levels of 50bps and the tweaked liquidity management framework, introducing the Standing Deposit Facility at the lower end of the interest rate corridor will enable financial stability and support economic activity.”

Rajiv Agarwal
Operating Partner, Infrastructure – Essar and
Managing Director – Essar Ports