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Below Quote on Monetary Policy outcome By Mr. Rahul Shresth - Vice President at Avener Capital

"Pause on repo rate hike announced by RBI came in as a surprise to many anticipating another rate hike by 25 bps. By lowering inflation projections to 5.2% and increasing the GDP forecast to 6.5% RBI has highlighted its commitment towards maintaining growth while keeping the prices in check. With an emphasis on inflation target of 4% and withdrawal of accommodation, RBI has kept a non-committal stance on such pauses in the forthcoming meeting. With lagged impact of cumulative 250 bps hike on inflation and persisting global financial uncertainties, repo rate is expected to remain at the current levels going forward as well. "

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