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Below View on RBI Policy by Mr Vikas Gupta, CEO and Chief Investment Strategist, OmniScience Capital

In light of the November increase of 75 bps by the US  Fed and expected 50 bs in the Dec FOMC meeting, RBI's increase of35 bps in interest rates is a clear tilt towards supporting growth. While managing inflation remains important and RBI's words are targeting inflation, the action is clearly supporting growth, as it should be. As RBI cites IMF's statement that nearly one-third of the world economies are going to contract, it is clear that supporting growth in such an environment is especially important. Inflation targeting is obviously important and RBI is doing it, but the trend in the numbers are clearly showing that policy action so far is working and the inflation numbers are likely to get tamed. Trying to tame inflation at a faster than its intrinsic pace would likely make the economic growth more volatile. Thus, RBI is doing absolutely the right balance on inflation and growth"

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