ARVIND CHARI, FIXED INCOME FUND MANAGER, QUANTUM ASSET MANAGEMENT, MUMBAI: RBI has continued and completed its calibration process with the Repo MSF difference now at 1 percent. The provision of another 0.5 percent on term repo would mean that along with Repo and standing liquidity facility, the overnight rate would cease to be at MSF but move between the Repo and the MSF (around 8.25%). Its a fairly neutral policy for long bond markets and further movements in yields should take cues from demand (and) supply. The overall guiding focus remains on inflation and one cant rule out another 25-50 bps hike till March next year -- if inflation remains sticky and if growth picks up.
Posted on: Tue, 29 Oct 2013 09:24:46 +0000
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