Could See RBI Deliver More Cuts as Early as June, Says Barclays’s Sanyal

The video discusses the Reserve Bank of India's (RBI) decision to maintain a neutral stance on monetary policy, indicating future actions will be data-dependent. It explores the impact of interest rates on inflation and the domestic economy, particularly in India, where the Consumer Price Index (CPI) is heavily influenced by food prices. The discussion also covers the Indian bond market's reaction to these policies, highlighting uncertainties around liquidity and supply pressures. The expectation is for further rate cuts, possibly starting in June, with a focus on maintaining liquidity support.

What is the RBI's current stance on monetary policy?

• Aggressive

• Neutral

• Dovish

• Hawkish

How does the CPI basket affect the impact of interest rates on inflation?

• It is heavily influenced by food prices.

• It is not affected by interest rates.

• It is unaffected by administrative support.

• It is solely dependent on interest rates.

What is a significant factor in the Indian bond market's current uncertainty?

• Liquidity injection methods

• Stable interest rates

• High inflation rates

• Increased foreign investments

What is the expected trend for the Central Bank's interest rate decisions?

• Increase rates significantly

• Maintain current rates

• Deliver more cuts

• Completely halt rate changes

What is the current yield on the 10-year bond in the Indian market?

• 7.4%

• 6.4%

• 8.4%

• 5.4%