INDIAN NEWS & TIMES

Wednesday, December 13, 2017

“The RBI cut the policyMr._Mihir_Vora-Director_and_CIO rates by 25 basis points from 6.25% to 6%. This was as per our and market’s expectations. RBI continues to be data-dependent and the 4% medium-term inflation target remains.

Versus the last policy, RBI recognizes that growth, industrial production and private capex are very sluggish, indicating weakness.

It thus looks like growth may be a more important concern in future policy decisions.

We believe that inflation will be well within the RBI’s comfort zone and in our view, growth in capex will likely remain elusive because of a host of factors. Thus one more rate cut in the next two to three quarters is likely.”