Pre-Monetary Policy View - Churchil Bhatt, EVP & Debt Fund Manager, Kotak Mahindra Life Insurance Co. Ltd.

“In the aftermath of Covid 19 second wave and the ensuing lock-downs, Indian economy once again finds itself in muddy waters. Key Developed Economies on the other hand are witnessing a stimulus driven, vaccination led rebound. While financial markets continue to remain upbeat about the local growth prospects, the strength and durability of the expected recovery remain key source of uncertainty going forward. In spite of sharp rise in global commodities, near-term outlook for local headline inflation remains benign. Given this backdrop , MPC is widely expected to reinforce its growth supportive bent in the upcoming policy meeting. We expect MPC to persist with its accommodative policy stance, keep abundant system liquidity and strive for an orderly evolution of yield curve via GSAP, OMOs and OTs.”