Views of Burman GSC on Repo rate cut by Reserve Bank of India

Gaurav Pandey, CEO Burman GSC said, "The RBI has been calibrating its monetary policy very well. As a first step, it ensured that the inflation was tamed and it waited to test the trend across weeks and then took the wise step of making the first repo rate cut, as expected, within the first quarter this calendar year. From a policy perspective, it shows the medium term monetary policy stance that the central bank has now taken and I am sure they would closely watch the inflation and growth numbers in the coming weeks. Given the crude oil being where it is, if the overall inflation remains at such levels, we could see future repo rate cuts too. This first repo rate cut is a subtle move yet could be a defining moment in the 'growth comeback story' for India in post 2015 era. On the other hand, the government is doing an excellent job and showing real commitment to revive the investment cycle, growth and controlling fiscal deficit."

Source : Equity Bulls

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