BLOG
RBI Policy – On expected lines a non-event
- The monetary policy meeting was largely a non-event on expected lines with no change in benchmark repo rate (6.5%) and liquidity stance (withdrawal of accommodation). It is the 9th consecutive meeting with no change in rates.
- Bond yields were absolutely unchanged. 10-year yield is hovering at 6.87%.
- GDP forecast remain unchanged at 7.2%.
- Inflation for FY25 as a whole remain unchanged at 4.5%. Q1FY26 inflation is projected at 4.4%.
- The probability of a rate cut in October has reduced with RBI maintaining its liquidity stance as “withdrawal of liquidity” as ideally the change in stance should precede the actual rate cut.
- Incrementally, since last MPC meeting, most major factors have turned favourable (US Fed almost certain to cut rates in September, progress of monsoon, decline in commodity prices including crude oil and gold). All these factors support dovishness, however, RBI currently may be lowering the market expectation in terms of rate cut.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
Related content
Blogs
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Video
Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.
Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.
Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.