The monetary policy is important in terms of whether they will indicate there is scope for easing going forward. Policy announcement for today will likely be a pause,” said V Srinivasan, Deputy MD of Axis Bank.
All eyes are on the Reserve Bank of India (RBI) as the Monetary Policy Committee (MPC) announces its decision today. A CNBC-TV18 poll indicates a status quo policy. In an interview with CNBC-TV18, V Srinivasan, Deputy MD of Axis Bank shared what he expects from the RBI.
As far as monetary policy is concerned, the expectation is a pause, he said.
This policy is important from the point of view of signalling whether they are going to try and give an indication that things are going to stay here rangebound or whether there is scope for easing. What we should watch out for will be in terms of what that easing can entail. he added.
According to him, with pick-up in credit growth, banks will need more deposits.
He is seeing a bit of uncertainty on the fiscal deficit front which is what is causing the bond market to be nervous. “What is going to come in the Budget is going to play a more important role in terms of how bond yields behave,” said Srinivasan.For full interview, watch accompanying video...