Mutual fund managers’ reaction to rate hike of Reserve bank of India: The RBI hiked its repo rate by 40 points and CRR or the cash reserve ratio by 50 points as a surprise. They announced it in one unannounced meeting. MPC or the Monetary Policy Committee decided on this hike after a very long time, say after 2018. Markets reacted negatively to this sudden decision. After just this announcement, the equity market fell around 1000 points. For more details follow onbreakingnews.com
The senior fund manager of Tata mutual fund, Akhil Mittal informed us that RBI surprisingly increased NDTL’s repo rate by 40 points and CRR by 50 bps. While this is a surprise, it strengthens its resolve to keep inflation under control. The move was made to keep inflation under control, which has been stubbornly over the target of 6% for the last week.
Fund Manager- Equity, Quantum AMC: Sorbh Gupta
According to him, the surprise move of RBI was a wonderful move. These types of things will keep on coming many times in an investor’s life. These things are done to achieve the goals. Investors should very stick to their asset allocation plans and try to increase the allocation to equities in a slow manner.
CIO- fixed income, of Mirae Asset Investment Managers: Mahendra Jajoo
According to him, this hike was done in an unscheduled meeting. And it was really a surprise and a good hike. RBI did this hike to achieve its target. Interest rates are also supposed to go high.
CIO-Fixed Income, SBI Mutual Fund Rajeev Radhakrishnan, MarzbanIrani CIO LIC Mutual Fund, and many more people talked about it. And explained it in brief. As it was done after a very long time of appx 4 years. The RBI hikes its Repo Rate means that the price of borrowing will be much more for the commercial banks.
RBI rate hike
RBI recently announced that the repo rate by 40 points and CRR or the cash reserve ratio by 50 points. It was a surprise given by RBI in one unscheduled meeting.
The Reserve Bank of India or the RBI is the central bank of India. RBI was established in 1934. This bank is responsible mainly for the regulation of the Indian Banking system. The RBI is under the Ministry of France, Govt of India (GOI). Other banks take supply from this bank only, this is responsible for supply and issue of an amount to them.