The announcement matched what the market anticipated Says Raghvendra Nath, Ladderup Wealth Management Private
Below is Perspective on RBI MPC Announcement By Mr. Raghvendra Nath, Managing Director - Ladderup Wealth Management Private Limited
“With the RBI's announcement of the fifth consecutive rate increase, loan rates will increase even further. The repo rate was increased by 35 bps, bringing it to 6.25%. The announcement matched what the market anticipated. Despite a reduction in the GDP growth prediction for India from 7% to 6.8%, the growth prospects remain strong as seen by the strong credit growth data, increase in the PMI manufacturing/services, and tractor sales, among other positive indicators. India is still a popular international investment hub. As the gradual tightening of interest rates ends, it is anticipated that capital inflow would improve even further. Given the concerns about Chinese demand for oil, the price of petroleum has fallen from its heights and is unlikely to test new highs. While core inflation is anticipated to stay sticky, crude prices will be kept in check thanks to the strengthening of the rupee and the decline in Chinese demand.”
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