Kolkata, Feb 10 (PTI) Bankers and financial experts Thursday welcomed the RBI's decision to keep policy rates unchanged, saying the move is extremely positive and aimed at controlling liquidity in the system.

The central bank's monetary policy committee earlier in the day decided to keep the benchmark interest rate unchanged at 4 per cent, and continue with its accommodative stance.

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Shanti Lal Jain, MD & CEO of Indian Bank, said with the variable reverse repo rate (VRRR) and other measures, the RBI will look to “control liquidity in the system”.

“Increasing the cap for foreign portfolio investment in the domestic bond market will help the government in its borrowing plans,” he said.

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Jain also said allowing banks to participate in off-shore swaps and increasing the mandate limit for trade credit to MSMEs was a welcome move.

Deputy MD of IDBI Bank, Samuel Joseph, said leaving the rates unchanged and with the guidance for 2022-23 inflation at 4.5 per cent, “the policy is extremely positive for the markets”.

Siddhartha Sanyal, Chief Economist of Bandhan Bank, said the RBI was emphatic in conveying its commitment to support economic recovery.

"While uncertainty about the inflation trajectory in the coming months cannot be ignored, the apex bank seems clearly in favour of following an extremely nuanced and calibrated monetary policy,” he said.

According to Chief Economist of Anand Rathi Shares and Stock Brokers, Sujan Hazra, the RBI remained more concerned on growth versus inflation, and therefore, kept all the policy rates unchanged.

A rate hike in the next MPC meeting is expected, he added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)