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Below the Comment on RBI Monetary Policy by Mr Shrey Jain, Founder and CEO SAS Online - India's Deep Discount Broker
 

The monetary policy review statement was on the expected lines when it comes to inflation and growth estimates. As long as inflation continues to trend downwards, the possibility of a cut in interest rates goes up. Though RBI will take a cue from the actions of the US Federal Reserve, it may not be as aggressive. The US Federal Reserve is expected to cut rates thrice this year. We expect a 50 basis points cut in repo rate this financial year.

The 10 years benchmark bond yield did not move much. The bond markets will take a cue from the g-sec auction. The issuance calendar for g-sec for April-September 2024 begins with the largest auction of securities worth Rs 38,000 crore. The bond market will take a cue from the outcome of the auction. Investors looking to play downward movement in long term yields should ideally accumulate units of exchange traded funds tracking Nifty 8-13 yr G-Sec index.

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