Motilal Oswal: Supporting The Economy Assumes Primacy In MPC Meeting; Along With Higher CPI Inflation

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.In what was being touted as a tough monetary policy decision in light of massive contraction in economic activity, along with higher consumer price index inflation (6.1% YoY in June 2020), the Monetary Policy Committee held up to its inflation-targeting mandate by keeping policy interest rates unchanged in its monetary policy resolution.The repo rate stands at 4%, the reverse repo rate at 3.35%, and Marginal Standing Facility rate stays intact at 4.25%. The MPC was unanimous in its decision to maintain the status quo on rates and also on the ‘accommodative’ stance.Furthermore, just like in the previous two ad-hoc monetary policy meetings, the Reserve Bank of India refrained from giving any estimates of either inflation or real gross domestic product due to fluid economic conditions.It expects headline inflation to remain “elevated” in Q2 FY21 due to persistent supply chain disruption on account of Covid-19, along with higher fuel taxes that are imposing cost-push pressures on both food and non-food prices.However, the RBI believes downward momentum in headline inflation could be achieved on account of a favorable base. Based on this assessment, the RBI expects inflation to “ease” in the second half of FY21..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: Supporting The Economy Assumes Primacy In MPC Meeting; Along With Higher CPI Inflation

Motilal Oswal: Supporting The Economy Assumes Primacy In MPC Meeting; Along With Higher CPI Inflation

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