Quote on US based Hedge Fund on the monetary policy By Suman Bannerjee, Hedonova
Below the Quote on US based Hedge Fund on the monetary policy Suman Bannerjee, CIO, Hedonova
One important aspect is that capital expenditure by companies is set to increase. Healthy balance sheets of banks and corporates, supply chain normalisation, business optimism and robust government capital expenditure are favourable for a renewal of the capex cycle which is showing signs of getting broad-based. Capital expenditure normally leads to higher inflation. The decision to keep the repo rate and unchanged comes at a good time and is the right thing to do. Inflation is already on the higher side. The RBI wants to remove extra liquidity from the system but not so much that it hurts GDP growth.
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