Interest rate cycle seems to have peaked out: Future Generali

India Infoline News Service | Mumbai |

The reduction in SLR requirement by 50 bps to 22.50% will release approx. Rs.39,000 crore of funds giving Banks more headroom to expand credit to productive sector

Interest rate cycle seems to have peaked out: Future Generali
“RBI kept the key policy repo rate unchanged @ 8%, keeping with the disinflationary glide path indicated earlier,” Dr. Nirakar Pradhan, CIO, Future Generali India Life Insurance said.
The reduction in SLR requirement by 50 bps to 22.50% will release approx. Rs.39,000 crore of funds giving Banks more headroom to expand credit to productive sector. A special term repo facility of 0.25% of NDTL (approx. Rs. 20,000 crore) will further help in development of term repo market.


As per the policy statements, interest rate cycle seems to have peaked out and Reserve Bank is expected to lower interest rates if inflation slows faster than anticipated in the coming months. This augurs well for both equity and bond markets going ahead.”
 

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