Pre RBI Policy expectations By Pankaj Pathak, Quantum Mutual Fund
Below are Views On Pre RBI Policy expectations By Pankaj Pathak, Fund Manager - Fixed Income, Quantum Mutual Fund
The RBI will most likely keep the policy rates unchanged and maintain an accommodative stance in this policy. This is broadly factored in prices. What matters most is its guidance on the future course of monetary policy and it’s market interventions (OMO/twists).
Amidst second wave of Covid infections and firming up inflationary pressures, the RBI is faced with a critical dilemma of choosing between supporting economic recovery which is still very fragile or tackling inflation before it gets too late. Our sense is that the RBI will continue to tilt towards growth and maintain a dovish tone in this policy. However it would be very difficult for them to maintain an accommodative stance for long if inflation pressure sustains.
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