Views on MPC by Marzban Irani, President - Fixed Income, LIC Mutual Fund Asset Management
Below the Views on MPC by Marzban Irani, President - Fixed Income, LIC Mutual Fund Asset Management
"The MPC’s unanimous decision to implement a dovish rate cut underscores its commitment to supporting support growth amid benign inflation, which remains below the lower band of 2%. While the likelihood of further near-term cuts is limited, the RBI has announced robust liquidity measures, including Rs.1 lakh crore of OMO purchases and a 3-year USD/INR buy-sell swap of $5 billion this month, aimed at ensuring systemic liquidity and stabilizing the INR. Transient liquidity needs will be managed through VRRR operations. These actions signal a clear intent to maintain financial stability and support economic momentum. With durable liquidity and a low probability of immediate rate cuts, yields are expected to remain firm and anchored. In this environment, investment strategies should focus on accrual at the shorter end and carry opportunities at the longer end, aligning with the evolving policy stance and market dynamics"
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