RBI's Monetary Policy Preview - MPC Likely To Pause Ahead Of Expected Third Wave: ICICI Securities
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.
ICICI Securities Report
At the upcoming monetary policy review scheduled for August 04-06, we expect the monetary policy committee to keep repo rate unchanged at 4%.
The committee continues to face a tightrope walk between controlling inflation and supporting growth.
Similar to the past few policy reviews, we expect the MPC to continue prioritising supporting growth over checking inflation. This is because-
while some high-frequency indicators are showing good momentum, recovery is still assessed to be nascent and fragile and
a third wave of Covid-19 is likely to hit the country beginning September 2021 and peaking in October 2021.
Hence, given the fragile nature of recovery and uncertain outlook, we expect the MPC to maintain status quo on rates.
Click on the attachment to read the full report:
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.