Latest News
-
1:4 Bonus Shares, Rs 7 Dividend: Big Update Announced; Buy The FMCG Stock? -
1:10 Stock Split: 1 Rs 980 Smallcap Has Split Into Ten Shares; Check Out New Price Level, Fundamentals! -
Rs 2.50/Share Final Dividend: Record Date In Due Course; Buy The ITC Group Stock? -
Rs 95/Share Dividend: Record Date On 28th June; Buy Mahindra Group Stock To Be Eligible? -
5 Bonus, Rs 28/Sh Dividend: IT Giant Infosys Beats Estimates In Q4FY24, But ADR Falls Sharply; Here's Why! -
1:10 Stock Split Approved: Small Cap Stock Issues Warrants, Shares Gain 111% YTD -
Wipro Q4 Results Preview: Weak Demand Likely To Drag Revenue Sequentially, EBIT Margins Seen Stable -
Rs 6/Share Final Dividend Declared: Buy The Blue Chip Stock To Be Eligible? -
TCS Vs Infosys: Dividend History And Upcoming Rewards, Which IT Giant Is Better? -
LIC New Jeevan Shanti 858 Plan: How To Earn Rs 10,000 Pension Per Month After Retirement? Check Eligibility!
RBI to be dovish on Dec 2, but rate cut in Feb only: Report
Mumbai: The Reserve Bank of India (RBI) is likely to take a "more dovish" stance in its upcoming monetary policy review on December 2 and may go in for a cut repo rate in February, according to a British brokerage house report.
"While the December 2 policy should turn more dovish, RBI Governor Raghuram Rajan may want to await
further clarity on the inflation peak-off," Bank of America-Merrill Lynch (BofA-ML) said in a report.
The report sees RBI achieving its inflation target of 8 per cent by January 2015 and 6 per cent by January 2016.
Retail inflation or CPI eased to 6.46 per cent in September, the lowest since January 2012, from 7.73 per cent in August.
However, RBI Deputy Governor H R Khan, had recently said that 'inflation still has a long way to go' and cautioned against early celebrations.
BofA-ML said that the case for lower rates looks increasingly compelling.
"September growth will likely slow to around 5 per cent from 5.7 per cent last quarter, buttressing our view that recovery will need lending rate cuts," the report said.
It said that a case for rate cut also arises as imported inflation is moderating, with oil prices stabilising on Fed rate hike expectations and the rupee holding at 58-62 levels due to RBI recouping foreign exchange reserves.
The report estimates CPI inflation to drop to 5.7 per cent in October from 6.5 per cent in September.
BofAML said economists expect the first Fed rate hike in September against an earlier expectation in June.
"It is another matter that we believe the RBI should be able to cut even if the Fed hikes, so long as it recoups foreign exchange reserves to stabilise rupee expectations," the report said.
SDM
PTI
