Mr. Rajeev Talwar, CEO, DLF Ltd's views on Monetary Policy

"The Reserve Bank of India (RBI) on Thursday, as expected, kept the repo rate unchanged at 6 percent. The good news is that the RBI believes that the Indian economy has truly moved into a fast lane, with GDP growth set to accelerate to 7.4 percent in 2018-19.

There are clear signs of revival both in consumption spending and investment. People buying more goods often mirrors a turnaround in the broader economy. In the current context, such trends are noticeable in vehicle sales. Importantly, commercial vehicle sales are also growing at a fast pace, this is a good measure that goods are moving at a faster pace from places of production to places of consumption.

Foreign tourist arrivals into India have also risen, another sign of confidence in India's broader economic parameters coupled with growth in domestic air passenger traffic, indicates greater disposable income.

It is also pleasing to note that bank credit to residential housing is on the rise. A rise in housing loans mirrors buoyant residential investment activity. This is another sign of growing confidence in the economy, as seen through people's willingness to invest in houses through long-term loans.

Large amounts of funds raised through primary capital markets indicates that companies are investing and adding capacities to meet rising demand for their goods.

On the regulatory side, it is heartening to note that the RBI is going to examine the option of digital currencies. The payment landscape both in India and across the world, is at a point of inflection. This has been brought about rapid technological changes leading to the emergence and growing acceptance of digital tokens. At the same time the RBI has also reiterated that trading in crypto currencies or crypto assets is an illegitimate activity. The Finance Minister has also said in his budget speech this year that India will not allow crypto currency.

Overall, we are seem to be well on the road to achieving a 7.2 GDP this fiscal, we hope that the RBI considers a rate cut in the next policy meeting which will spur hosing demand further."

Source : Equity Bulls

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