Following the central banks MPC (Monetary Policy Committee) slashed the repo rate, a rise in rupee and a fall bond has been viewed. The rupee has risen by 15 paise whilst bond has decremented by 0.56 per cent. The decision has been taken in the central banks bi-monthly meet.
Prior to MPCs announcement, the rupee has slashed by 20 paise in the morning. The MPC committee led a change in the policy stance as well; the current policy stance is neutral.
In Q3 FY2019, BI shows inflation at 2.4 per cent and 3.2-3.4 per cent in Q1 as well as Q2 FY2019. (Source: ET news)
RBI forecasts that GDP of the financial year 2020 would be 7.4 per cent. It is reckoned that focus on growth and inflation has precipitated a surge in the Indian currency.
Gaurav Dua, who is heading research in Sharekhan, said that The monetary policy support along with the fiscal stimuli of Rs 1 lakh crore in the Union Budget comes as a booster dose for the economy. (Source: ET news)