The extension of rationalised risk weights for individual housing loans till March 2023 will incentivize the flow of credit in the economy: Rajiv Sabharwal

8 Apr 2022 , 02:57 PM

RBI keeps the rates  unchanged and continues with its accommodative stance as this shows RBI’s resolve to support durable growth. This comes at the backdrop of the prevailing geopolitical complexities, increased global disruptions and the crude oil shock. Further, RBI lowers the growth estimates for FY 23 which reflects the downside risks and evolving uncertainties.

The inflation trajectory is showing a strong northbound bias. The expectation of softening the core inflation was derived from moderation of food inflation has been dissipated by the volatile crude prices, currency pressures and elevated input cost. The RBI will closely monitor emerging data points.

With the introduction of the Standing Deposit Facility (SDF), the RBI has restored the LAF corridor to pre-pandemic levels. The SDF will be put to use for liquidity absorption and comes as an additional tool for the overall liquidity management framework, said, Rajiv Sabharwal, MD & CEO, Tata Capital Ltd said..

The extension of rationalised risk weights for individual housing loans till March 2023 will incentivize the flow of credit in the economy.