Motilal Oswal - MOSL: ECOSCOPE-RBI expected to adopt a delicate balancing act-Separating cyclical from structural issues need of the hour

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Motilal Oswal

Nikhil Gupta

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MOSL: ECOSCOPE-RBI expected to adopt a delicate balancing act-Separating cyclical from structural issues need of the hour

ECOSCOPE: RBI expected to adopt a delicate balancing act; Separating cyclical from structural issues need of the hour

The pressure on the Reserve Bank of India (RBI) to cut interest rates this week has mounted dramatically, considering the 20-quarter slowest headline GDP growth of 5.8% in 4QFY19 and the headline inflation at sub-3%. Whether the RBI should complement it further with liquidity-easing measures is also debated. In the to boost the economy, the RBI is expected to maintain a delicate balance between short-term relief and long-term strategy.
While the RBI considers the demand for an easy monetary policy, it must also ensure its pass-through to the real economy. Thus, it is imperative to separate cyclical factors from structural issues that grip the economy. If the current liquidity concerns and economic slowdown are attributed to structural factors, not only will the transmission be difficult, but the effectiveness of monetary easing will also be limited, implying that the pain is inevitable.

04/06/2019 1 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Nikhil Gupta

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MOSL: ECOSCOPE-RBI expected to adopt a delicate balancing act-Separating cyclical from structural issues need of the hour

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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