DMI AIF - The Sparkle Fund’s Post

The MPC kept the policy rate and stance unchanged in today’s meeting, with two members once again voting against the consensus. While the market anticipated some softening in tone, it remained hawkish amidst the uncertainty surrounding food inflation. We retain our view of a rate cut likely in Q3, but now with a higher probability assigned to December due to no signs of softening in policy tone today and upward revision in the inflation forecast for Q2. Read more: https://lnkd.in/gmzx2rBZ #ResearchReport #India #NBFC #Fintech #DMIFinance #DMI

The MPC kept the policy rate and stance unchanged in today’s meeting, with two members once again voting against the consensus. While the market anticipated some softening in tone, it remained hawkish amidst the uncertainty surrounding food inflation. We retain our view of a rate cut likely in Q3, but now with a higher probability assigned to December due to no signs of softening in policy tone today and upward revision in the inflation forecast for Q2. Read more at https://lnkd.in/dmn4jZ9a #DMI #OKAS #OKASDMIAIF #DMIAIF #PrivateEquityRealEstate #InvestmentManagement #DMI #FinTech #India #RBI #RBIPolicy #FintechReports #EconomicResearchReports #EconomicResearch #EconomicGrowth #FinanceandEconomy #IndianEconomy #RepoRate #Inflation

The MPC kept the policy rate and stance unchanged in today’s meeting, with two members once again voting against the consensus. While the market anticipated some softening in tone, it remained hawkish amidst the uncertainty surrounding food inflation. We retain our view of a rate cut likely in Q3, but now with a higher probability assigned to December due to no signs of softening in policy tone today and upward revision in the inflation forecast for Q2. Read more at https://lnkd.in/dmn4jZ9a #DMI #Oxymoney #DigitalPayments #India #RBI #RBIPolicy #FintechReports #EconomicResearchReports #EconomicResearch #EconomicGrowth #FinanceandEconomy #IndianEconomy #RepoRate #Inflation

The RBI held its policy rate and stance unchanged in today’s meeting. The tone of the governor’s statement remained cautiously hawkish recognizing the upside risks to inflation and the need to bring it down to a target of 4%. We expect rate cuts could begin in Q2 FY25, however given the acceleration in inflation in H2 FY25 the room for substantial cuts will be limited. Read more at https://lnkd.in/g7PHVCGa #DMI #Oxymoney #DigitalPayments #India #FintechReports #EconomicResearchReports #EconomicResearch #EconomicRecovery #EconomicGrowth #FinanceandEconomy #IndianEconomy #RBIReport #RepoRate

The RBI held its policy rate and stance unchanged in today’s meeting. The tone of the governor’s statement remained cautiously hawkish recognizing the upside risks to inflation and the need to bring it down to a target of 4%. We expect rate cuts could begin in Q2 FY25, however given the acceleration in inflation in H2 FY25 the room for substantial cuts will be limited. Read more at https://lnkd.in/g7PHVCGa #DMI #OKAS #OKASDMIAIF #DMIAIF #PrivateEquityRealestate #InvestmentManagement #India #FintechReports #EconomicResearchReports #EconomicResearch #EconomicRecovery #EconomicGrowth #FinanceandEconomy #IndianEconomy #RBIReport #RepoRate

The RBI held its policy rate and stance unchanged in today’s meeting. The tone of the governor’s statement remained cautiously hawkish recognizing the upside risks to inflation and the need to bring it down to a target of 4%. We expect rate cuts could begin in Q2 FY25, however given the acceleration in inflation in H2 FY25 the room for substantial cuts will be limited. Read more at https://lnkd.in/g7PHVCGa #DMI #DMISparkleFund #TheSparkleFund #FinTech #India #FintechReports #EconomicResearchReports #EconomicResearch #EconomicRecovery #EconomicGrowth #FinanceandEconomy #IndianEconomy #RBIReport #RepoRate

It was a pleasure to discuss our view on RBI's latest monetary policy with CNBC-TV18, alongside Pranjul Bhandari, soumya kanti ghosh and Neeraj Gambhir. We discuss the implications for banks at 8.05 and 17.05 mins. Three key implications: 1) CRR cut of 50bps - Estimate 4-5bps of NIM and 0.5-1% PAT benefit for banks, and expect PSU banks with low LDR to be a key beneficiary. - In terms of second order impact, we expect retail term-deposit rates to have peaked out and bulk deposit rates to ease. 2) Higher interest rate ceiling for FCNR(B) deposits - do not expect it to drive higher USD deposit mobilisation, given the current rates offered by banks are well below the existing ceiling. 3) Enhancement of collateral-free agricultural loan limit should aid banks’ small and marginal farmers (SMF) priority sector lending portfolio, but rising Agri stress is worth monitoring.

In its October meeting, the RBI left the repo rate unchanged at 6.5% for the tenth consecutive meeting. However, it changed the policy stance from “withdrawal of accommodation” to “neutral”, considering a well-balanced inflation-growth dynamic. It stated that it now has greater confidence in navigating the last mile of disinflation while remaining cautious about potential risks from geopolitical tensions and market volatility. Assuming no major surprises in geopolitical developments and domestic food inflation, we continue to anticipate the first rate cut by the RBI at the December policy meeting. Read more: https://lnkd.in/gzYckbAc #ResearchReport #DMI #DMIFinance #NBFC #Fintech #India

The RBI Policy announcement for the ninth consecutive time maintained a status quo on policy rates, keeping the benchmark repo rate unchanged at 6.5 per cent. ·        Maintained the policy stance of ‘withdrawal of accommodation’ ·        Highlighted solid economic growth & signs of easing inflation ·        Standing deposit facility (SDF) rate - 6.25 per cent. ·        Marginal standing facility (MSF) rate & Bank rate - 6.75 per cent. Pathak recommends Dynamic Bond Funds for investors. #QuantumMutualFund #RBIMonetaryPolicy #InvestWithoutStress Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

"The MPC may look through high food inflation if it is transitory; but in an environment of persisting high food inflation, as we are experiencing now, the MPC cannot afford to do so." - RBI Governor Clearly the RBI sees the food inflation as more persistent than transitory. It is a fact that food inflation has been elevated for some time now. However, it is almost entirely contributed by repeated supply shocks mostly emanating from adverse weather conditions. It's difficult to point out any structural or cyclical demand force driving food inflation in the current environment. The point is - whether the food inflation is 'transitory' or 'persistent' is dependent on conditions like rains, flood, heat waves, cold etc. rather than natural demand supply conditions in the economy. Monetary policy is not equipped to deal with supply side food inflation. However, there is no other agency directly accountable for controlling it. This is making monetary policy over dependent on climatic conditions. Having said that, if monsoon goes well and we don't face any other supply shock, there is a reasonably high probability of inflation falling much lower than the RBI estimates. On growth there is no clear sign of demand pick up. Private final consumption growth has been at best sluggish, Core Inflation is at lowest point since its origin, and current account balance is below 1% of GDP. Nonetheless, only opinion that matters is that of the RBI. From that standpoint, rate cuts look far in future. While the good news for fixed income investors is that the RBI policy is not the only force driving the market now. There is a structural shift in demand supply which is playing much bigger role. Turning global monetary policy might also extend some support to domestic bonds. Overall, the positive move should continue. #RBIpolicy #FixedIncome