RBI Monetary Policy Review | Edelweiss Wealth Management

In this video, Ankita Pathak from Edelweiss professional investor research, shares her review on RBI’s first Monetary Policy report for FY 20 with 25 bits cut, bringing repo down to 6%. The three takeaways from the Monetary Policy Report: 1. RBI has maintained a mutual stand indicating it to move in either direction regards to the future rate cuts. However, given that inflation and growth is under shooting expectations at this point. 2. Both inflation and growth has been revised downwards from the previous policy. The FY20 inflation forecast is now below RBI’s medium term target of 4% CPI inflation. FY20 GDP growth has been projected at 7.0%, in line with slowdown in various production and consumption indicators. The cut in growth has been weakening of the investment activity and slowdown in global growth which remains a key drag on India’s exports. 3. There has been a significant concern of liquidity remaining deficit, despite RBI’s multiple actions. RBI has now allowed banks to use additional 2% from the SLR for their liquidity coverage ratio. The governor also affirmed in the press conference that RBI is working on devising on multiple measures to tackle the liquidity crunch which will help in efficient transmission of the rate cuts. For detailed Report on Monetary Policy Review, you can visit: https://www.edelweiss.in/research/markets-economy-reports-3/rbi-monetary-policy-review---further-cuts-likely-1efa39 To explore the latest research reports, you can visit https://www.edelweiss.in/research/ and stay updated. Connect with us Website: https://www.edelweiss.in/ Facebook: https://www.facebook.com/edelweissonline/ Twitter: https://twitter.com/Edelweissonline YouTube: https://www.youtube.com/channel/UC0ik1TOToNoGQdPsZlDfVPA EMT App Download Link: https://play.google.com/store/apps/details?id=com.msf.emt.mobile&hl=en_IN Read Full Disclaimer and disclosure before investing: https://www.edelweiss.in/cas/disclaimer/disclaimer_research_ebl.html