Quote by Mr. Rajeev Radhakrishnan - Head Fixed Income, SBI Mutual Fund on RBI Policy

Quote by Mr. Rajeev Radhakrishnan - Head Fixed Income, SBI Mutual Fund on RBI Policy..

 Quote by Mr. Rajeev Radhakrishnan – Head Fixed Income, SBI Mutual Fund

The first Monetary Policy statement under the MPC, reinforces the data dependency of additional policy rate actions. The policy rate cut, acknowledges the recent deceleration in CPI readings as well as muted global demand conditions. While the statement has not spelt out the timeline for attaining the 4% mid-point, the initial indications point to some flexibility around the time period for attainment of the mid-point.

 Mr. Rajeev Radhakrishnan –
Head Fixed Income, SBI Mutual Fund

Over the next few months, the CPI readings are expected to remain soft, well within the March 17 range of 5%. This should enable markets to be supported , even in the absence of additional policy accommodation, given the expected continuation of the liquidity stance as well as weaker credit demand.

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