RBI Monetary Policy: Fund managers weigh strong GDP, soft inflation, and INR depreciation concerns
India’s fund managers are closely watching the RBI’s upcoming monetary policy decision as the economy shows strong GDP momentum and inflation continues to soften. While the central bank is expected to maintain its cautious stance, market participants believe stable inflation and healthy economic growth give the RBI some room to remain supportive. However, concerns over the recent depreciation of the Indian rupee and global uncertainties still weigh on investor sentiment. Equity managers expect the RBI to maintain its focus on stability, while debt managers anticipate limited movement in interest rates until inflation remains firmly within the target range. With global central banks shifting towards a more balanced policy tone, Indian markets are looking for guidance that may influence bond yields, liquidity levels, and foreign investment flows. Overall, fund managers believe the RBI will prioritise inflation control while cautiously acknowledging India’s resilient economic performance.
The Key points
- Fund managers await RBI’s monetary policy signals.
- Strong GDP data boosts market confidence.
- Inflation remains soft, offering policy comfort.
- Rupee depreciation raises stability concerns.
- RBI likely to maintain a cautious policy stance.
- Debt markets expect limited rate adjustments soon.
- Equity markets look for growth-supportive cues.
- Global central bank trends influence expectations.
- Bond yields may react to liquidity guidance.
- Investors focus on RBI’s inflation-control priorities.
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