Quote on RBI monetary policy announcement on behalf Religare Enterprises Ltd.

Mumbai, 05th February 2021 (GNI): “The RBI kept benchmark repo rate unchanged at 4% in line with expectations. At the same time, the central bank has promised to maintain accommodative stance to support economic recovery and ensure growth doesn’t stutter due to lack of adequate liquidity and high interest rates. While inflation is currently within RBI’s tolerance level, high fuel prices and escalating inputs costs for manufacturing sector need to be monitored. This is certainly a tight rope walk for RBI this year, particularly because of government’s record borrowing plan for FY22. Given NBFCs’ strong last mile connectivity, the decision to allow the segment to access funds under on tap TLTRO scheme is a welcome move as it will provide liquidity for further lending to key sectors at lower rates”, stated in the press release.ends