 "RBI, Reserve Bank of India")
The Reserve Bank of India’s (RBI’s) decision to maintain status quo in its monetary policy offers continuity to financial markets. RBI is hoping that easy money and low interest rates will induce a quicker revival of economic activity. This is probably the correct decision under the current circumstances. The market expectation was on these lines and the MPC decision did not move the needle much.
At current levels of inflation, the real return from debt is very low. Hence, domestic investors will be tempted to stay overweight or go even more overweight in equity and other risky assets. Also, the cost
