Surprise over RBI's more dovish than expected stance
Experts are surprised over RBI’s more dovish than expected stance.
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Mumbai, Feb 11 Experts are surprised over RBI's more dovish than expected stance.
Umesh Revankar, VC & MD, Shriram Transport Finance Co says, "Pleasantly surprised by RBI's more dovish than expected stance. RBI continued to prioritise growth by keeping rates unchanged and also maintaining an 'accommodative' stance for as long as necessary."
We continue to remain optimistic about revival in CV (commercial vehicle) demand especially demand for medium to heavy vehicles (MHCV), which has seen demand contraction in the last two years. CV sales in Q3 have been flat, but now with the infra push from Budget 2022, we expect a healthy revival in credit in 2022, he said.
The MPC's unanimous vote to keep key policy rates unchanged is encouraging for credit growth which has been lagging FY19 levels. The accommodative stance by the RBI will support economic activity, which is slowly getting back to normal.
YS Chakravarti, MD & CEO, Shriram City Union Finance, said that the capex cycle is about to unfold driven by the Union Budget 2022 infra spends, in addition to which all-time-low interest rates will be supportive.
The tone of the MPC's monetary policy statement was more dovish than expected, yet, the status quo on key policy rates is a positive for the housing finance sector, especially given the absence of any impetus in the Union Budget 2022.
Ravi Subramanian, MD & CEO, Shriram Housing Finance says, "We expect the momentum to sustain in the current quarter led by a revival in urban consumption and positive consumer sentiment across Tier-2 and Tier-3 cities."
The central bank seemed sanguine on domestic inflation, assuaging some concerns on the higher cost for construction. Further, with the Omicron wave starting to abate, the government's focus on infrastructure and housing should ensure that demand for home loans remains buoyant going into FY23.
Ajit Banerjee, CIO, Shriram Life Insurance said that the latest policy announcements are consistent with RBI's earlier stand of continuing with a growth-supportive stance till there are signs of a durable recovery.
