Views of Mr. Dinesh Thakkar - CMD, Angel Broking on Second Bi-Monthly Monetary Policy

Views of Mr. Dinesh Thakkar (Chairman & Managing Director, Angel Broking) on Second Bi-Monthly Monetary Policy:

"The RBI has kept the key policy rates unchanged in its second bi-monthly monetary policy review. Consequently the Repo rate remains at 6.5% and CRR at 4%. The CPI inflation negatively surprised for the Month of April 2016 going up to 5.39%, accelerating from 4.83% in March and hence it was highly unlikely that RBI would have gone for a rate cut during the current review meet. We believe RBI will have enough data points post monsoon, which will help in deciding whether there is immediate scope for rate cuts or not. In the event of monsoon panning out as per the IMD which has forecast an above normal & well distributed monsoon, there is a likely hood of rate cut in the August policy review."

Source : Equity Bulls

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