Published on 7/06/2017 6:02:22 PM | Source: Quantum Mutual Fund

Thee RBI would leave the Repo rate unchanged at 6.25% - Quantum AMC

Posted in Expert Views | #RBI #Banking Sector #Expert Views #Quantum Mutual Fund


Below is the views the RBI Monetary Policy by Arvind Chari from Quantum Fixed Income Team.

 

Quantum's View on the RBI Monetary Policy  

That the RBI would leave the Repo rate unchanged at 6.25% was expected, but what we were looking for was its assessment of future inflation and for a divergence in the views of the Monetary Policy Committee (MPC) members. We seem to have got both, the RBI has lowered its inflation projection for FY 18 taking into account recent inflation data. As also for the first time the MPC voted 5-1 to hold rates, which means that one member possibly voted for a rate cut.  

This does open up the scope for a rate cut in the August policy, if monsoon progresses as expected and if global conditions continue to remain favorable. 

 

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