Pre - Monetary Policy view by G Murlidhar, MD & CEO, Kotak Mahindra Life Insurance Company Ltd

“2021 has seen a rise in yields across the Globe in line with vaccination led optimism. However, the case for India is a little different this time, with rapid rise in new Covid cases over last few weeks. In upcoming policy, MPC may continue to emphasize the importance of “orderly evolution of yield curve” given benign inflation trajectory and second wave headwinds to nascent growth recovery.

While we don’t expect any action on the policy rate front, the existing accommodation and the on-going support to bond markets are expected to continue for a bit longer.”