RBI CUTS REPO RATE:ACCHE DIN PART1
An element of cheer has been brought into by the RBI decison to reduce rates by 25 basis points.
What is the road ahead?
1.We would see a staggered rate cut sooner than latter in the next 3-6 months.It would set the course for next year.
2.Globally crude prices are expected to be range bound as supply is still more than demand.
It implies a possibility of a growth environment with capex likely to take off in H22015.
The governor has hopefully bitten the bullet from a sustained rate cut point of view.
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