RBI monetary policy: Repo rate unchanged, here's what experts say

According to Setty, the liquidity management by RBI is on the expected lines.

“There are no surprises but it gives great confidence to us that the momentum which we have seen in the last two months particularly in Q2 will continue to be there,” he said.

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Baig added that the central bank need not worry too much about inflation.

“If you think about the years 2020, 2021 and 2022, every successive year would be lower inflation. We are going from 6 to 5ish to 4ish into 2022, 2023,” he said.

It is a very dovish policy and the focus is around growth and growth impulses, said Anand.

“The intent should be to ensure that we get durable growth and on the back of that we start to see credit growth going forward. That is perhaps the intent of the RBI as well as we get into FY23,” he said.

“We are going to continue to be in an environment where liquidity will be somewhere around Rs 6-8 lakh crore over the next 18-24 months. Therefore the challenge in front of RBI is to ensure that the short-end rates don’t move towards the reverse repo rates but rather stay close to the repo rate and at some point of time in FY23 we start to move the repo rate up albeit slowly,” he added.

"The fact that policy continues to prioritize growth, downplays inflation and there is no talk about the path to either tightening or rates increasing is fundamentally very comfortable for the markets," said Narain.

In terms of the pattern, RBI is clearly following the set path of reducing liquidity in system, said Chopra.

Barua said that this is a formal acknowledgement that the real monetary policy tool has nothing to do with what the MPC does.

“It is what is happening with liquidity management,” he said.

Liquidity management is going on an expected lines however there has been a little bit of spike in the liquidity in the last fortnight, said Soumya Kanti Ghosh, Group CEA at SBI.