IGI Logo

Below are Views On RBI Policy By Mr. Mahendra Jajoo, CIO, Fixed Income, Mirae Asset Management

In line with evolving macro environment, RBI policy maintained accommodative stance to support the nascent recovery but hinted at continued normalisation of liquidity. This likely indicated a gradual inching up of yields in due course but without disrupting the ongoing economic recovery in any way. Investors with asset allocation approach and long term investment horizon may like to continue to remain invested but should expect elevated volatility in days ahead.  

A major structural reform was also announced today. Retail investors can now open a direct account for govt bonds. It may just be the beginning of a viable substitute for small savings schemes at market rates. However, much like sovereign gold bonds, likely pick up pace will be at a slow rate.

Above views are of the author and not of the website kindly read disclaimer