Key Points
The Reserve Bank of India (RBI) on Friday left the repo rate unchanged at 6.5% for the 7th straight time, while remaining focused on the withdrawal of accommodation to ensure that inflation progressively aligns to the target while supporting the growth...
The policy was on expected lines and turned out to be a non-event for the markets barring the realty sector with stocks gaining up to 7%..
Following the policy experts came out with their views on the policy and its impact on equity and bond markets..
The current decision will help manage the seasonal variation of liquidity conditions in the domestic market through a mix of policy instruments viz VRR and VRRR auctions and rupee-dollar movements amid enhanced expectations of the rate cut by the Fed in coming quarters..
Bond yield and equity premiums are expected to remain stable in the near term amid anticipation of strong FII flows and reduction in government borrowings in coming quarters...
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