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Below is quote on RBI MPC by Mr. Mahendra Jajoo, chief investment officer—fixed income, Mirae Asset Investment Managers

As expected, MPC kept key policy rates unchanged and retained monetary policy stance. Inflation expectations have been increased by about 50bps while growth projection have been retained unchanged at 9.5%.  Policy stance remains committed to supporting growth revival as long as its required. With increase in variable rate reverse repo amounts, one would expect an orderly transition to a normalized monetary policy without any major disruption and that remains the highlight of the policy allowing for a smoother risk management framework for market participants.

Debt funds are expected to continue to benefit from the accommodative policy stance and may be better equipped to deal with any future hike in rates without any major violent phase. Shorter maturity oriented schemes may find better traction under current atmosphere. Money market Funds investing primarily in high credit quality money market instruments of up to 1 year along with other similar category funds may attract more attention from investors`

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