Views on MPC by Mr. Marzban Irani, CIO of Fixed Income at LIC Mutual Fund
Below the Views on MPC by Mr. Marzban Irani, CIO of Fixed Income at LIC Mutual Fund
"RBI has front loaded rate cut cycle by announcing a 50bp Repo rate cut. Terminal rate now stands at 5.50%. The change in stance from Accommodative to Neutral will limit downward movement of yields. CRR cut of 100bp to 3% has surprised the markets and is expected to release liquidity of Rs. 2.5 lakh crore. CRR cut to bring down yields at shorter end significantly. RBI has reiterated that it is committed to ensure price stability and is focused on supporting growth. Any further policy decisions will continue to remain data dependent. Recommended to invest in tenure ranging 3 month to 3 year schemes to take advantage of CRR cut."
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