“In today’s RBI Monetary Policy no major policy
changes have happened. Considering that Inflation specifically CPI has eased
during last 2 months and the Current Account deficit has also shown significant
improvement it was expected that RBI will not make any significant change in
the policy rates specifically on the upward direction.
Going forward key monitoring factors will be, formation
of new government, impact of el Niño on monsoon performance and the current
account deficit. However the positive macro signals along with expected
improvement in GDP growth due to clearance of significant infrastructure
projects will help a lot. I expect that another few months of improvement in
inflation, better GDP growth and stable monsoon will give RBI room to reduce
the Policy rates and basis the current trends I don’t expect any further
increase in policy rates in the next monetary policy.”
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