Quote | RBI Policy | DEC 2020 | Dr. Poonam Tandon, CIO, IndiaFirst Life Insurance Company Limited

‘The RBI kept the policy rates unchanged given the growth-inflation dynamics with accommodative stance. The focus is to revive growth and spur economic activity, which has been disrupted by the Covid19 pandemic while ensuring inflation remains within the targeted range. The RBI noted that the near term financial stability risk has been contained amid current macros and will continue to use various instruments to ensure ample liquidity. In our view, we see the overall policy tone as extremely positive both for equity and debt markets as the focus remains on growth recovery with further commitment to ensure adequate liquidity with a soft interest rate and broadening credit flow to the economy.’