RBI Holds Rates Steady Amid Uncertainty; Policy Measures Aim to Support Rupee and Strengthen External Stability

By:- Ritesh Taksali, Chief Investment Officer, Edelweiss Life Insurance

“RBI keeps key policy rate and stance unchanged citing uncertainty; Inflation revised upwards and growth revised downwards due to clouded monsoon outlook and higher commodity prices on account of the ongoing West Asia war. However, various policy initiatives announced to strengthen BOP such as expanding the universe of securities where FPIs can invest without limit and scheme for FX deposits from overseas funds amidst other should limit further weakness in currency. The government notification on removing capital gains tax on government securities added further to the positive momentum for the rupee.”