Welcome to ETMarkets’ Investors Guide, a show about asset classes, market trends and investment opportunities. This is Sandeep Singh.
In the last bimonthly money policy review of this financial year, RBI kept its policy rate unchanged and extended the schemes to infuse liquidity, as the focus remained fixated on growth. However, the central bank also tried to strike a balance by announcing a rollback of some of the emergency measures.
But the bond market remained nervous as lack of an open market operations calendar kept it on the edge. The yield on 10-year government securities has spiked since the government outlined its massive borrowing programme for next financial year in the Union Budget.
To understand the implications and the nitty-gritty of the RBI policy outcome, we connected with Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank.
Welcome to the show, Ms Bhardwaj.
Q1. Why is the debt market not convinced by Governor Das’ liquidity management measures?
Q2. Is there a conflict in RBI’s accommodative stance, higher inflation projection and high growth projections?
Q3. What is your target range for 10-year bond yields in six months to one year?
Q4. Imports are rising as demand recovers. What are your estimates for India’s deficit this year? Can you tell us how this trend will impact the USD-INR pair?
Thank you Ms Bhardwaj, that was indeed an insightful conversation.
That’s it in this week’s edition of the special weekend podcast. Do come back next Saturday for this weekly special. You can check out our regular podcasts on the equity market twice every weekday.
