“As expected by us RBI kept key rates on hold and maintained their neutral stance. Inflation projections and Real GVA growth for FY 18 have been lowered based on recent data releases. On GST RBI assesses that it may not have a material impact which is comforting. RBI appears to be against taking premature action on rate front and would like to observe further data prints on inflation and real activity front. The key concern remains the state of banks’ balance sheet including much needed recapitalization.


Given recent data prints, ample banking system liquidity and macroeconomic stability on domestic front we think gilt and bond prices will we well supported post RBI policy.”



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