Motilal Oswal - MOSL: ECOSCOPE-RBI moves closer to a rate cut, sticks to â€˜neutralâ€™ stance while lowering inflation forecast to 3.5% for FY18

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Motilal Oswal

Nikhil Gupta

MOSL: ECOSCOPE-RBI moves closer to a rate cut, sticks to â€˜neutralâ€™ stance while lowering inflation forecast to 3.5% for FY18

â€‹ECOSCOPE: RBI moves closer to a rate cut, sticks to â€˜neutralâ€™ stance while lowering inflation forecast to 3.5% for FY18

â€‹The Monetary Policy Committee (MPC), as expected, chose to keep the policy interest rates unchanged, continuing with the â€˜neutralâ€™ policy stance it had adopted in February 2017.
The Reserve Bank of India (RBI) lowered its FY18 inflation forecast dramatically from ~4.75% earlier to ~3.5%, and FY18 real GVA was also downgraded by 10 basis points (bp) to 7.3%.
Notably, it was for the first time since the formation of MPC that a decision was not taken unanimously, with member Dr Ravindra Dholakia having a different view. It would be interesting to see if the differences grow wider in future.
Admittedly, we found the statement relatively less dovish than expected. Despite a significant cut in FY18 inflation forecast, the RBI does not seem confident to cut rates. However, we expect lower inflation to compel the RBI to cut rates.

08/06/2017 4 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.

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Nikhil Gupta

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MOSL: ECOSCOPE-RBI moves closer to a rate cut, sticks to â€˜neutralâ€™ stance while lowering inflation forecast to 3.5% for FY18

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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