IGI Logo

* MPC delivered the monetary policy action on expected lines in Feb’23 meet, raising repo rates by 25bps (6.5%) while leaving the stance unchanged at “withdrawal of accommodation”.

* Central banks around the world have either reduced the pace of rate hikes or are considering a pause, as growth is better than expected. The way ahead will be difficult for central banks in the EM economies, as rate hike cycle in DM economies is far from over while any incremental rate hike in EM economies would involve growth sacrifice.

* The windfall tax on domestically produced crude oil was raised by Rs. 3,150/tonne to Rs. 5,050/tonne, Rs.2.5/litre to Rs. 6/litre on ATF and 5/litre to Rs. 7.5/litre on high speed diesel with effect from 4th Feb’23.

* DIPAM secretary exuded confidence about meeting the disinvestment target for FY24 (Rs. 510bn). Of the Rs. 500bn revised disinvestment target for FY23, the government has raised Rs. 311bn so far.

* Asian spot LNG prices eased for 7th consecutive week to USD 18.5mmBtu, which is the lowest since Aug’21. ? US trade balance widened to USD 67.4bn in Dec’22 vs USD 61bn in Nov’22. US trade deficit with China (USD 23.5bn) was 10times of that with India (USD 2.4bn) in Dec’22.

* UK Economy narrowly missed entering into a recession (technically), as GDP remained unchanged (0%) in Q4CY22 vs a decline in Q3. In calendar year 2022 UK economy grew 4%.

* After the MPC decided to hike the policy rates by 25bps in Feb’23 meet, the markets would be keenly awaiting the CPI inflation print of Jan’23 which is scheduled to be released on 13th Feb. Indication of further easing in inflation (including core) would help MPC in taking the further course of monetary policy action.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.jmfl.com/disclaimer

SEBI Registration Number is INM000010361

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