Quote/ Views of Ms. Bekxy Kuriakose, Head – Fixed Income, Principal Pnb Asset Management

Quote/ Views of Ms. Bekxy Kuriakose, Head – Fixed Income, Principal Pnb Asset Management

“RBI cut the Benchmark Rates by 25 basis points in its first policy meeting under Monetary Policy Committee, with all the 6 members supporting the cut. The policy outcome was as per market expectation, which had partially factored in the rate cut in the prices.

 The statement spoke about the slowing momentum of food inflation and reduction of small savings rate and felt that the upside risk to inflation was somewhat lower than last policy statement. In the post policy con-call RBI spoke about real interest rate around 1.25%, compared to 1.5%-2,0% earlier. We expect another 25 basis rate cut by March 2017.”