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

Status quo in monetary policy is largely in line with expectation. Given that the RBI has already exhausted the monetary policy options to support growth any further reduction in policy rates is unlikely. We believe the next move in policy rates will be an increase though it may not happen in the current calendar year.

RBI will have to continue its support to the bond markets to keep overall interest rates low for as long as possible. Continuation of GSAP program should bode well for the bond markets in near term. However, potential change in the monetary policy direction in second half remains a risk. We expect bond yields to move higher gradually over medium term.

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