Comment on RBI Monetary Policy by Mr Shrey Jain Founder and CEO of SASOnline - a deep discount broker on RBI credit policy
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Below the Comment on RBI Monetary Policy by Mr Shrey Jain Founder and CEO of SASOnline - a deep discount broker on RBI credit policy
Despite a cut in interest rate by the ECB, the Reserve Bank of India chose to keep the rates unchanged, which is in line with expectations. Inflation remains a focus area for the RBI. However, expectation of above normal monsoon may enhance agriculture output. That should help to contain inflation numbers.
The biggest positive surprise for the investors came in the form of an increased estimate of GDP growth to 7.2% for FY2025, compared to 7% earlier. This is on the optimistic side. The Governor has maintained a balanced view of economic growth and inflation. The equity investors should now look for the details of the formation of the government in the centre and hope for a pro-growth budget for FY2025.
It is reasonable to expect a cut in repo rate towards the end of this year, given the global cues. Investors keen to benefit from the fall in yields should gradually accumulate units of exchange traded funds tracking Nifty 8-13 yr G-Sec index on yield spikes.
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