Views of Abhishek Goenka (Founder & CEO, India Forex Advisors Pvt. Ltd) on today's RBI Monetary Policy:
Abhishek Goenka. "The most awaited monetary policy review is out and the RBI has acted in lines with the expectations. The RBI was expected to take a growth stance considering the series of growth reforms undertaken by the government since...
cityairnews
Jan 29, 2013 12:30
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Abhishek Goenka.
"The most awaited monetary policy review is out and the RBI has acted in lines with the expectations. The RBI was expected to take a growth stance considering the series of growth reforms undertaken by the government since September 2012.
RBI cut repo rate and CRR both by 25bps. Repo rate was kept unchanged at 8% since April 2012. Repo rate now stands at 7.75% and CRR at 4%. CRR cut will infuse the liquidity worth Rs.18,000cr in the system.
RBI holds its concern over inflation and current account deficit. It reduced its target for inflation to 6.8% from 7.5% for March quarter. It says large fiscal deficit will crowd out private investment and widening current account deficit problem will persist. He also shows concern on short term flows financing the current account deficit. We personally feel that rupee may not appreciate much and 53.00-53.20 will still remain the base with the ultimate target of 54.50-55.00 levels in this quarter."
(Source: Corporate Communications, India Forex Advisors Pvt Ltd)
