Views on RBI MPC by Rahul Goswami, CIO & MD, India Fixed Income, Franklin Templeton
Below the Views on RBI MPC by Rahul Goswami, CIO & MD, India Fixed Income, Franklin Templeton
Persistently low inflation and subdued core inflation has given RBI the headroom to cut repo rate, despite global headwinds posing threat to capital flows. The RBI’s move of repo rate cut and liquidity enhancing measures, is consistent with its focus on growth by ensuring availability of credit and transmission of lower rates to productive sectors of the economy. However, we think that RBI will remain extremely prudent and give precedence to price stability over growth when inflation concerns rise.
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