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Below are Quote on Pre RBI Policy Expectation by Pankaj Pathak - Fund Manager - Fixed Income, Quantum Mutual Fund

We do not expect any major change in the monetary policy or RBI’s posturing about future course in this policy. The second wave of covid-19 has raised uncertainty around the future economic outlook and pushed the potential policy normalisation further into the future. The RBI may revise its GDP growth forecast lower and maintain its focus on reviving growth. We believe the RBI has already exhausted the monetary policy option to support growth and more easing won’t be forthcoming as inflation is gaining momentum.   

From bond market’s prospective, focus will be on the announcement of GSAP program. The GSAP 1.0 will expire in June 2021. Market will look out for continuation of the GSAP program to support the bond markets. We do not expect any major change in interest rates, however quantum and schedule of GSAP could drive yields over short term.   

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