One base point is one -100th point. This is the first reduction since May 2020, when the price was reduced to alleviate the effects of COVID-19.
“The profit spending proportional to GDP has decreased from 11.4 % to 11 %, and this is financially wise,” said Gaula Senvatta, Chief Economist in IDFC First Bank. “Therefore, from the MPC’s point of view, the number of deficit has nothing to do,” she said.
ABHISHEK UPADHYAY, ABHISHEK UPADHYAY, ABHISHEK UPADHYAY, an advanced economist, bond strategy, advanced economist of ICICI SECE Dealer. “RBI will also be able to focus on growth management.”
Certainly, the three participants in the polls believe that the RBI will not reduce interest rates. RBI is one of the few central banks that have not reduced interest rates, despite a colleague, including the US Federal Reserve, and has begun a easing cycle much earlier. As a domestic inflation dominated by food prices, it was stubborn. I believed that MPC was reduced early, and that inflation genie would be closed out of the bottle for a long time. The inflation rate in December was eased from 5.5 % in November to 5.2 %, but GDP growth in September 2024 withdrew to 5.4 % and decreased due to a decrease in corporate consumption and a decrease in profits. It is expected. OIS) The price is also a price setting, and CCIL data indicates that OIS trading in the year is 6.33 % on January 31. The OIS market is usually a price of about 25 Basis points, which is usually expected that traders will have reporates at a specific time. RBI’s actions on fluid measures have indicated the start of a relaxed cycle because the number of fluctuating gaps, which has become as wide as 22,000 rupees, has been reduced by purchasing a large number of floating interest rate reports and direct bonds. 。 The global factor is complicated by the central bank’s policy response. Rupy has decreased by more than 3 % since November to 86.6 per dollar. By selling US dollars to prevent sharp slides, RBI has caused fluid drainage that RBI is working on various measures. Some believe that this is a sign that the central bank will be able to extend one year reduction until April because the central bank will treat the movement of the currency better.
“I think it will be reduced in April, not a February policy,” said Rajeev Radhakrishnan, the SBI Mutual Fund’s highest investment officer. “It is necessary to make sure that the RBI is appropriate and is not emphasized. Reduction is not transmitted because the rate is not transmitted, so it does not have a desirable impact. It is easy and neutral to send a fee. You need surplus conditions.
Some investors hope that the RBI will reduce the cash protection area (CRR), as RBI has released the `1.16 LAKH crawl on the system, as RBI did in December. However, it is caused by the announcement of other fluid improvement measures. “It is suitable for the RBI to inject fluidity first using other means and then evaluate whether the CRR cut is needed,” said Upadhyay.
