Mutual fund managers decode RBI Policy
RBI has been holding rates since February. Here 11 mutual fund managers explain the policy for investors.
Mahendra Jajoo, CIO Fixed Income, Mirae Asset MF
In line with market consensus, MPC conveyed a balanced approach with keeping key policy rates as well as stance unchanged considering ebbing inflationary pressures globally but still emphasising on the need for policy to be actively disinflationary. The pleasant surprise was a significant revision upwards in FY24 growth projections by 50 bps to 7%. Inflation projection for FY 24 remains unchanged at 5.4% but that for Q2FY25 is projected at 4%. Market will feel somewhat relieved on the suggestion that with liquidity turning in deficit on its own accord, OMO operations may not be needed in the immediate term.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View Details»With global financial conditions easing significantly in the last few weeks with bond yields easing across, India govt bond yields also are expected to have an easing bias. Money market rates remain elevated for now and are expected to come down once the liquidity situation begins to improve
Akhil Mittal, Senior Fund Manager, Tata Asset Management
As expected, policy was a non-event with no change in rates or stance. Strong growth trends domestically and falling inflation have both been highlighted. Liquidity condition developments remain aligned with policy stance and hence no OMO sales were required (as mentioned in previous policy). RBI seems to be committed to achieving inflation targets while keeping a close watch on global financial market conditions.
With policy largely in line with expectations and no mention of Open Market Operation (OMO) sales
