Angel Broking - Monetary Policy Review.

[Rajesh Desai]

Dear All,

 

Forwarding you the Monetary Policy Review.

 

 RBI reduces repo rate by 25bp on expected lines

 

The Reserve Bank of India (RBI) in its Monetary Policy Review delivered on expected lines and reduced the Repo Rate by 25bp from 7.50% to 7.25%.

 

Consequently, Reverse Repo Rate stands adjusted to 6.25% and the Marginal Standing Facility Rate and Bank Rate stand adjusted to 8.25%.

 

The Cash Reserve Ratio remains unchanged at 4.00% of banks’ NDTL.

 

RBI maintained a cautious stance and indicated that there is a ‘little’ space for further monetary easing. While it acknowledged lower inflation trajectory going ahead, it expressed caution with respect to the Capital flows and the CAD, and as a result, mentioned only limited headroom for further monetary easing. In line with this, we expect another one or two rate cuts going ahead, while positive surprise in forthcoming inflation readings, may provide further headroom.  

 

Kindly click on the following link to view the Report.

 

Monetary Policy Review

 

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With best regards,
Fundamental Advisory Desk
Angel Broking
Akruti Star,6^th Floor, Road No.7,MIDC, Andheri (E),Mumbai – 93.
Call         : (91) (022) 39357600 Ext. 6865
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Disclaimer: Ours is an advisory role. The final decision and consequences based on our information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.

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CA. Rajesh Desai