Fourth Bi-Monthly RBI Monetary Policy - Views of Mr. Dinesh Thakkar, CMD - Angel Broking

Views of Mr. Dinesh Thakkar (CMD - Angel Broking) on Fourth Bi-monthly RBI Monetary Policy:

"The RBI has given a positive surprise to the markets, by cutting repo rate by 50bps, as against expectations of 25bps cut. Inflation has been well under control with CPI below 4%, creating a good window to cut rates, before some seasonal uptick in coming months from potentially higher food prices (ex-cereals) due to deficit monsoons. In our view, even with some hike the US Federal Reserve rates likely later this year, there is head room for the RBI to remain accommodative as structural factors driving inflation in India have abated and global deflationary forces remain strong. Overall, we continue to expect downward bias in interest rates in India, which should act as one of the catalysts for investment revival, going hand-in-hand with favourable government measures."

Source : Equity Bulls

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