Perspective on the ‘Monetary Policy’ by Rajani Sinha, Chief Economist & National Director –

Research, Knight Frank India

“The RBI has taken reassuring steps to infuse additional liquidity into the housing sector
through the interventions of increased financing to National Housing Bank and extension of
priority sector tag for bank funding to NBFCs for housing loans.
However, given the inflationary concerns in recent months, RBI has maintained the status quo
on key policy rates. At a time when rising second wave of COVID infections and subsequent
lockdowns are derailing economic momentum, RBI interventions will help maintain adequate
liquidity as well as prevent hardening of yields in bond market. These measures will ensure
economic stability as well as keep real estate sector stay afloat during such precarious times.
Hopefully, benign retail inflation on account of better monsoon and easing of crude oil prices,
coupled with accommodative stance would translate into lowering of policy rate in near
future.”
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Apr 7, 2021
 13:57

Views on RBI Policy: Dhiraj Relli, MD &CEO, HDFC Securities

“The outcome of the MPC meet was on expected lines as far as repo rates and stance are
concerned. However, the  announcement of secondary market G-sec acquisition programme
(G-SAP 1.0), where the RBI will commit upfront to a specific amount of open market purchases
of government securities with a view to enable a stable and orderly evolution of the yield curve
amidst comfortable liquidity conditions, was a positive surprise. This shows the resolve of the
RBI to keep Gsec rates under check despite the large borrowing program. The endeavour will
be to ensure congenial financial conditions for the recovery to gain traction. The large
amounts committed in Q1 and in April show the seriousness of the RBI in implementing the
Gsec program.
The markets have reacted well to this measure as this will result in rates not rising and, in fact,
easing down for businesses. The impact of the MPC announcements however will wither away
in a couple of days time and the markets will keep responding to other triggers including Covid
progress and corporate results.”
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Apr 7, 2021
 13:46
Rohit Poddar, Managing Director, Poddar Housing and Development Ltd on RBI's MPC
announcement
 
“The first RBI policy of FY’22 with its continued accommodative stance to maintain liquidity
surplus in the market can be viewed as being pragmatic. Though the RBI moves away from
time-based guidance, it has prudently provided timelines to its liquidity-focused measures
providing cushioning to the financial markets.
The equity markets will cheer with the announcement on RBI’s Government Securities
Acquisition Programme. This will ensure government borrowing at a low cost and be able to
address pandemic-related adversities from both economic and healthcare aspects.
From a real estate point of view, an additional Rs.10,000CR for NHB for fresh lending will
create a seamless environment to sustain the business operation. As a major part of credit
borrowing happens from NBFCs in the real estate sector, the extension provided till 30th
September will boost liquidity even further.”
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Apr 7, 2021
 13:39

Quote on RBI MPC by Jimeet Modi, Founder & CEO, Samco Group
"The RBI continues to maintain their accommodative stance along with a dovish outlook,
which hasn’t been much of a surprise to the Street. The repo rate along with the GDP forecast
of 10.5% for FY22 was inline with expectations and infact the bond market cheered with a dip
in yields post the announcement. The GSec Acquisition Programme of Rs. 1 Lakh Cr for this
quarter was the clincher in the entire speech, however, there was only little the MPC could do
given the uncertainty on the rising number of cases and vaccination drive. While their attempts
to flatten the yield curve and enable sufficient liquidity through bond purchases in the system
have worked in the economy’s favour so far, it will have to be seen how prompt the RBI
remains if the condition worsens given the renewed lockdowns in a few states in India. The
policy lagged aggressiveness and was more balanced this time, nevertheless the efforts do
seem positive for the time being."
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Apr 7, 2021
 13:29

GSAP is not a one off measure, there will be more going ahead: RBI Guv
 
Reserve Bank of India (RBI) governor Shaktikanta Das on Wednesday said that the G-Sec
acquisition program (GSAP) is in addition to normal instruments in their toolkit for liquidity
management. "It is not a one-off measure. There will be more going ahead," he said while
addressing a press conference. "Our signals, actions and communication must be read
together. G-SAP is different from the usual OMO calendar. We have conducted total OMOs of
Rs 3.13 lakh crore in FY21," he added. RBI has decided to put in place a secondary market
Government Security Acquisition Programme (G-SAP) 1.0 for orderly evolution of the yield
curve in FY22.