Tuesday, August 5, 2014

Reaction to the #RBI Monetary Policy from private Life Insurance sector

"Maintaining the stance on disinflationary glide path announced in the earlier policy, the Reserve Bank of India today  kept the benchmark  Repo Rate unchanged at 8%.  The RBI monetary policy targeting a  CPI inflation rate of 6% as on January 2016 complements well with the Government pursuing the fiscal deficit target of 3% as on March 2017. These measures would bring down  inflation and likely  provide Indian savers real rate of return in future.

Reduction in statutory liquidity ratio (SLR) by 50 bps to 22% of NDTL will release liquidity approx. Rs.40,000cr to the system. The stable interest rates and improved liquidity conditions will support  the ongoing economic recovery process".
By Nirakar Pradhan, CIO, Future Generali India Life Insurance