3 min read.Updated: 06 Jun 2019, 10:16 PM ISTB. Prasanna
The formation of a committee to examine the liquidity framework is an added positive
The June monetary policy checked all the right boxes as far as markets expectations were concerned. The widely anticipated 25 bps cut was reinforced by a unanimous 6-0 verdict on the voting and a change in the stance to “accommodative". While this is the third consecutive rate cut, the voting pattern and stance change has helped to unequivocally convey an accommodative rate path, which assumes paramount importance against the backdrop of fragile domestic and global growth prospects. The accompanying statement and the post policy rhetoric indicated that rising growth concerns have clearly taken precedence over fears of inflation. The formation of a committee to examine the liquidity framework is an added positive.
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