Senior leadership at Essar share their views on RBI’s Monetary Policy Statement dated 4 May 2022

“Reserve Bank of India’s decision of hiking the policy repo rate by 40 bps to 4.40 per cent was a move to be taken sooner or later to tackle the rising inflation pressures and control excess liquidity. However, this in turn will strengthen the core economic growth and ensure stability in this rapidly evolving business environment at reasonable rate which is being impacted due to various geopolitical conflicts. MPC’s announcement of increasing the CRR by 50 bps will direct a setback of the easy liquidity state.”

Sanjay Palve

Senior Managing Director, Essar Capital

“MPC’s decision of having hiked rates in an off-cycle meeting is justified from the lens of inflation management. The impact on the market is likely to stay negative in the short-term and will slow down the growth trajectory but it will certainly help the nation stay ahead of the curve. The move will ensure to tame inflation and not affect the recently observed revival of the Indian economy.”

Rajiv Agarwal

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