Budget numbers indeed look challenging to achieve: DSP MF's Saurabh Bhatia

Whilst the noise on feasibility of budget numbers and risks on sovereign borrowing would persist in the near term, the budget outcome has certainly eased the job for RBI MPC to ease rates further

As the markets prepare for the outcome of the two-day Monetary Policy Committee meet on August 7, SAURABH BHATIA, Head of Fixed Income, DSP Mutual Fund tells Nikita Vashisht that fiscal deficit, current account deficit (CAD), inflation, growth and global outlook point towards a softer interest rate regime going ahead and he expects two rate cuts during the current fiscal. Edited excerpts:

What are your expectations from the Reserve Bank of India’s (RBI’s) meet this week?

Larger movements in yields are determined on the basis of the expectations of further moves in repo rate and intent of government to maintain