The rBI Governor announced his first Monetary Policy on Friday. Here are the Reactions coming from various Chief Economists of Brokerage / Research Houses.
Ritika Mankar Mukherjee of Ambit Capital said,
RBI governor’s first monetary policy review, the RBI normalised the MSF-repo rate corridor (effectively by 100bps) and increased the repo rate by 25bps. In view of the RBI’s explicit focus on inflation, we reiterate our view that repo rate increases of another 25-50bps are likely to be administered over the rest of FY14. This is likely to be accompanied by the continued stabilisation of the MSF corridor from September to October 2013, as the next Fed meeting is scheduled for end-October 2013. There is a high probability that the next round of intervention is administered in mid-October 2013 i.e. ahead of RBI’s early-November policy review and ahead of the Fed’s end-October policy review
Citigroup Analyst Anurag Jha made the following observation, (more…)