Goldmine Update – 07/02/19

Today RBI could announce its monetary policy. It could shift to neutral stance from hawkish tone earlier. Also there is a chance of 50 bps CRR cut. The RBI may want to wait and see the impact of expansionary budget on inflation before moving ahead. Also Indian inflation is around 4% and US interest rates are around 3.2% for the long term. So we cannot go below 6.5% interest rates currently. Any reduction in interest rates will result in lot of outflows from Bonds. Though some are expecting a 25 bps rate cut.

RBI will approve first half yearly audit before declaring dividends to the Government. RBI will meet on Feb 18 to decide on the dividend amount.

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