Market risk is temporary, credit risk permanent, says Mirae's Jajoo

RBI announced a series of confidence boosting measures, including commitment to conduct adequate OMOs, introducing for the first time, OMOs of state development loans, and online LTROs

Policy rates may be kept low for the foreseeable future, with frequent interventions by way of liquidity injection and market operations, says MAHENDRA KUMAR JAJOO, chief investment officer-fixed income, Mirae Asset Management India. In conversation with Ashley Coutinho, he says the focus on credit-related complications is symptomatic of a recency bias amid the Covid-19 pandemic. Edited excerpts:  

What do you make of the policy decisions taken by the Reserve Bank of India (RBI) last week?

The RBI announced a series of confidence-building measures, including commitment to conduct adequate open market operations (OMOs), OMOs of state development loans, and online long-term