Quote on RBI MPC announcement by Mr. Vishal Goenka, Co-Founder of IndiaBonds
Below the Quote on RBI MPC announcement by Mr. Vishal Goenka, Co-Founder of IndiaBonds
RBI MPC Rate Cut and its Impact on the Bond Market and Fixed-Income Strategies of Investors
“Given the recent inflation prints and the lack of transmission of lower interest rates in the banking sector, the RBI repo rate cut by 25bps is timely. Interestingly, the forward expectations of inflation have come much lower, opening the door for another rate cut if required before the end of the financial year. The idea is to make funding cheaper for governments and corporates, and the Rs. 1 lakh crore OMO purchases announcement should assist in boosting liquidity and flattening the yield curve. Following this, investors should look to lock in current high rates from corporates in the 2-3y segment and complement this by buying long end government bonds for potential gains.”
Above views are of the author and not of the website kindly read disclaimer
