Mumbai: As expected, the RBI delivered a status quo policy, keeping both its stance and policy rate unchanged. The central bank also kept its growth and inflation forecast unchanged for FY24 continuing to sound cautious on inflationary risks.
Ashwini Kumar, Head- Market Data, ICRA Analytics, the wholly owned subsidiary of ICRA said, “The 10-year government bond yield is likely to rise as the central bank has said it will consider Open Market Operations (OMO) sales to manage liquidity in the system. ICRA analytics foresees the 10 year benchmark yield to trade between 7.25-7.40 per cent in the near term.” Abheek Barua, Chief Economist and Executive Vice President, HDFC Bank, said, “More importantly, given the pulls and pressures on liquidity conditions in the coming months, the RBI did not announce any durable liquidity absorption measures for now (like CRR hike) in line with our expectations.”
