Systematix’s views on RBI’s monetary policy: Reaction from Mr. Arun Gopalan, Vice President, Research at Systematix Shares & Stocks (I) Ltd.

“As expected by us there was no change either on the policy rates or the liquidity. Also exactly in line with our expectation the RBI Governor stated that there is an “upward risk” to inflation on account of a resurgence in Commodity Prices and the 7th Central Pay Commission. What is important is the “accommodative stance” highlighted by the Governor, which could imply a rate cut in the August monetary policy.”