Mid-quarter review a non-event :: CSEC Research

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Mid-quarter review a non-event

Highlights

·          Status quo on key policy rates

·          Repo – 8.5%, reverse repo – 7.5% and margin standing facility rate – 9.5%

·          Reserve ratios maintained

·          Cash reserve ratio at 4.75% (75 bps cut with effect from 10^th March)

·          Statutory liquidity ratio maintained at 24%

·          Pause on a rate cuts comes on the back of risks on inflation and an uptick in IIP

·          The upcoming budget would be amongst the event drivers on policy action

House view:

Global commodity prices, weak rupee and suppressed fuel prices are potential sources of risk to inflation. Ahike in fuel prices appears imminent even as the chorus for a rate cut is getting louder. Growth has been largely driven consumption with investment demand lagging system wide growth.  Credit growth is expected to remain subdued, unless a rate cut kicks in. Over the next couple of months, deposits rates are likely to stay put.

 

Regards,

CSEC Research