Pre-Monetary Policy view by Mr. Sandeep Bagla, TRUST AMC
Below are Quote on Pre-Monetary Policy view by Mr. Sandeep Bagla, CEO-TRUST AMC.
"In the upcoming Credit policy, RBI has a tough task at hand, navigating between galloping commodity prices, which raise inflationary expectations - and the unpredictable impact of the lockdowns on employment, production and general welfare in the real economy.
Easy liquidity conditions and low policy rates have not led to widespread growth in credit offtake which is languishing at multi year lows.
In case of uncertain economic outlook, a central banker is likely to err on the side of caution by continued easy liquidity and policy rates lower than normal to simulate the economy.
It is expected to be a no change policy, with continued economy friendly soft interest rate bias. The market should continue to have faith in RBI’s ability to contain inflation credibly for the policy to succeed. We, at TRUST MF, recommend fixed income investments in structured high quality bond portfolios up to 3 year maturity in the current interest rate scenario."
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