Quote from Mr B Prasanna, MD & CEO, ICICI Securities Primary Dealership Ltd.on the credit policy

"The Credit policy has successfully attempted to balance the risks between current growth and inflation. The RBI has decided to continue with the accommodative monetary stance in order to aid the return of the economy to the high growth path while at the same time highlighting the potential build up of inflationary pressures going forward. It is commendable that they have chosen to prepare the markets of an exit strategy sometime in the future by mentioning that the accommodative stance is not the steady state stance. This review appears to signal a formal end to the easing cycle but a reversal will be dependent on the pace of recovery.

Ten year yields are likely to trade in a close range at the current levels but light positioning going in to the policy and lack of a big supply in the long end would aid a gradual fall in yields in that segment," said Mr B Prasanna, MD & CEO, ICICI Securities Primary Dealership Ltd.

Source : Equity Bulls

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