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.
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| 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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