RBI taken a right deision at a right time by keeping the repo rate unchanged: Amrapali Aadya

Mr. Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments:

RBI taken a right decision at right time by keeping the repo rate unchanged at 6.25%. From the Industry point of view, it is desirable to have the lower interest rate but when the system is flooded with low cost deposit and liquidity, where rates are already at the comfortable level, further cut could have triggered inflation risk. It could have also dented the household savings yields. Additionally, it could have narrow down the spread between the Federal bond return and Indian bond return. Initial, negative reaction from the currency market was premature; however it changed the course after factoring the real impact of holding rates.

Source : Equity Bulls

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