August 8, 2022

Politics and Commentary News Aggregator

RBI Hikes Repo Rate By 50 BPS, Higher Than Our, Market Expectations: Motilal Oswal

2 min read

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

The Reserve Bank of India, on August 05, 2022, hiked the policy repo rate by 50 basis points to 5.4%. Consequently, the standing deposit facility now stands at 5.15% and the marginal standing facility/bank rate stands at 5.65%.

The hike was both above market expectation of 35bp (to 5.25%) and our assumption of 25 bps (to 5.15%).

This is the third repo rate action by the RBI in FY23 to date. Cumulatively, the RBI has hiked repo rate by 140 bps (excluding the 40 bps hike on SDF in April 2022) in two scheduled and one out-of-turn policy meetings since May 2022.

The MPC reiterated its continued focus on ‘withdrawal of accommodation’ to contain inflation while supporting growth. The decision on rate hike was unanimous, while Dr. Jayanth Varma expressed reservations on the stance.

However, the RBI kept its inflation/growth forecasts unchanged at 6.7%/7.2% YoY, respectively, for FY23.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime 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 BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal Financial Services
2022-08-06 08:55:22

All news and articles are copyrighted to the respective authors and/or News Broadcasters. LC is an independent Online News Aggregator


Read more from original source here…

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.