Home loan norms, interest rates: Brokerage views on RBI's policy review

RBI lowered its inflation projection for H1 FY18 to 2.0-3.5% from 4.5% earlier

The Reserve Bank of India (RBI) kept key rates – repo and reverse repo – unchanged while reviewing the monetary Policy on Wednesday. 

The central bank also sharply lowered its inflation projection for H1 FY18 (year ending March 2018) to 2.0-3.5 per cent (from 4.5 per cent earlier) and H2 FY18 to 3.5-4.5 per cent (from 5 per cent), with risks evenly balanced. It also lowered its GVA growth projection to 7.3 per cent from 7.4 per cent for FY18.

Here’s how leading brokerages and research houses interpret the RBI’s move.

NOMURA

In our view, the RBI has rightly looked