Fitch Solutions sees the RBI keeping benchmark interest rates unchanged until March 2022, following the decision to purchase बॉन्ड 1 lakh crore of government bonds.
Since the Union Budget announcement in February, we initially expected another policy rate cut to curb the increase in government bond yields.
“However, having a clear bond purchase guidance from RBI after the announcement of G-SAP will also achieve a similar effect if the rate cut to cap the increase in bond yield is not more effective than it is,” it said. .
The Reserve Bank of India (RBI) in its monetary policy meeting on 7 April kept its policy repurchase (repo) rate unchanged at 4%.
In addition, RBI announced a secondary market government securities acquisition program committed to purchase up to ₹ 1 lakh crore of government bonds in April-June, another step towards formalizing quantitative easing. “At Fitch Solutions, we have revised our forecast for the RBI to maintain our policy repurchase (repo) rate of over 4% during FY 2012 (April 2011 – March 2012), before 25 basis points In our view of. ”
Fitch Solutions revised its inflation rate forecasts to 5% on average in FY22 due to revised inflation pressures, up from 4.6% previously.
High inflation “underscores our expectation for the RBI to maintain our policy”, it said.
Since the announcement of the Union Budget in February, government bond yields have increased, leading to the government. An adequate market borrowing scheme of 14.3 lakh crores has been received.
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