Views on today's monetary policy by Ms. Lakshmi Iyer, Chief Investment Officer (Debt) & Head - Products, Kotak Mutual Fund
The RBI hiked the repo rate to 8% from 7.75% contrary to consensus view. The forward guidance however has been a tad tamer where the RBI has indicated that if the disinflationary process evolves according to this baseline projection, further policy tightening in the near term is not anticipated at this juncture. The policy measure taken today seems to set the path for disinflationary process thereby reducing the need for further rate hikes in the near term. This should augur well for the markets which has in a way got some more clarity on the likely future course of action. We expect the bond yields to consolidate at the current levels.Powered by Capital Market - Live News