RBI Monetary Policy - Key Takeaways: IDFC Research 
The Reserve Bank of India (RBI) logo is displayed on a wall inside the central bank’s regional headquarters in New Delhi, India (Photographer: T. Narayan/Bloomberg)

RBI Monetary Policy - Key Takeaways: IDFC Research 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDFC Research Report

The Monetary Policy was set against a backdrop full of push and pull factors. Some of them were as follows -

1. Resurging domestic growth in context of a global reflation trade leading most boats, including commodity prices, higher.

2. A wider budget deficit that has thrown up unexpected additional bond supply, especially for this year but even for the next. This has fed market anxiety that was already developing since the reintroduction of 14 day variable reverse repo earlier in the year.

As a result government bond yields at the five year point as an example have risen almost 50 basis points since the start of 2021, threatening to unwind a large part of recent transmission just as corporate sector borrowing may be getting ready to pick up.

Click on the attachment to read the full report:

IDFC Monetary Policy February 2021.pdf

DISCLAIMER

This 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 author entity 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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.