RBI Monetary Policy Review - Acuité Ratings and Research

RBI monetary policy review by Karan Mehrishi, Lead Economist, Acuité Ratings and Research.

"The 25 bp rate cut is in line with expectations given the likely slowdown in global and domestic growth along with the continued softness in headline inflation. However, RBI has rightly persisted with a neutral stance and remains cautious since there are concerns on a normal monsoon and likely pressures on food inflation over the next 2-3 quarters. The liquidity situation is expected to strengthen with the measures adopted by RBI such as the dollar swap scheme and the continuing attractive differential in sovereign paper yields leading to higher FII debt flows."

Source : Equity Bulls

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