By – Dr. POONAM TANDON, Chief Investment Officer IndiaFirst Life
“The MPC has kept the repo rates unchanged. The MPC has reduced the inflation numbers from 3.7% to 3.1%. The growth rate has been kept at 6.5% despite the uncertain global uncertainty. The policy stance is kept neutral. The MPC has appropriately used all the tools in the last 2 quarters to infuse liquidity and rate cuts and will see the effects of this move. The inflation forecast will be on the rise and will perhaps focus more on the core inflation. The 10-year G-sec rate has increased by 5 bps as the market has realised that the Governor may not give further rate cuts and also that we are in the last leg of the interest rates cutting cycle. Overall, the policy was very balanced and on expected lines. The Governor also announced T-Bill SIP for retail investors under the platform of RBI direct, which is a welcome step.”