Views on MPC Meeting by Mr. Marzban Irani, CIO of Fixed Income at LIC Mutual Fund
Below the Views on MPC Meeting by Mr. Marzban Irani, CIO of Fixed Income at LIC Mutual Fund
The Reserve Bank of India announced a 25-basis point rate cut, bringing the repo rate down to 6% from 6.25% which is in line with market expectations. The policy stance has shifted from 'neutral' to 'accommodative', indicating the possibility of further rate hikes. The RBI assured that liquidity will be infused as required, offering comfort to the markets. Forward projections may remain optimistic, with inflation expected to stay around 4% and GDP (Gross Domestic Product) growth projected at 6.5%. Given the benign inflation outlook, the RBI is likely to focus on growth through monetary stimulus measures. Overall, the policy is viewed as positive for fixed income markets.
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