Quote on RBI Monetary Policy by Vaibhav Chugh, CEO, Abakkus Mutual Fund
Below the Quote on RBI Monetary Policy by Vaibhav Chugh, CEO, Abakkus Mutual Fund
‘As anticipated, today’s MPC was more about direction than rates. While policy rates remain unchanged, the RBI has taken clear and measured steps to attract foreign capital and deepen the bond market by expanding access to longer-term Government Securities and easing FPI limits. Along with supportive tax measures, this can help channel flow into government borrowing and strengthen overall capital inflows. These actions can be supportive for both fixed income and equities, boosting liquidity, helping keep yields stable, and easing overall financing conditions. At the same time, the macro backdrop remains watchful, with supply chain disruptions from the West Asia conflict, recent fuel price hikes, and concerns around a weak monsoon continuing to pose risks. Overall, this is a balanced and forward-looking policy stance, supportive for markets while maintaining macro stability. For markets, the message is clear- stability remains the priority, with a balanced and careful approach in more uncertain environment.’
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