COMMENTARY
KUNAL KUNDU, INDIA ECONOMIST, SOCIETE GENERALE, BENGALURU
"As expected by us and the market, the RBI kept the policy rate (the repo rate) unchanged at 4% while keeping the stance as accommodative. This too is in line with our expectation despite the surging inflation since the massive second wave of infection has induced ample uncertainty about the recovery momentum."
"While nobody is expecting a reversal of the momentum, there is already tell-tale evidence of stalling momentum. As we have been reiterating, various high-frequency data for February does suggest loss of momentum and this has seemingly extending to March."
"More importantly, with domestic consumption being much more muted compared with the levels of activity, worries do persist even though RBI retained its FY21-22 real GDP growth expectation at 10.5%. This, we believe, will eventually be revised down by 2H21."
RUPA REGE NITSURE, GROUP CHIEF ECONOMIST, L&T FINANCIAL HOLDINGS, MUMBAI
"Today's policy is in line with the expectations. The RBI's assurance on the secondary market gilt purchase programme in FY22 will help in the management of the yield curve. However, the MPC's projections of the GDP and CPI trajectories do not reflect the uncertainties created by the second wave of COVID-19 infections and the use of blunt measures like lockdowns in many states."
 "RBI Monetary policy highlights: Inflation outlook uncertain, says RBI guv")
