Views of Mr. Killol Pandya, Senior Fund Manager, Debt of LIC Nomura Mutual Fund on RBI Monetary Policy

The policy has been broadly in line with our expectations. It is a pragmatic policy with a realistic assessment of the concerns relating to inflation and growth. The policy is relatively more dovish than earlier though not overly benign.

RBIs stance appears to be one of wait and watch as it gathers more data and gains clarity on the trajectories of inflation and growth. The policy has highlighted the need for sustaining low inflation, accelerating fiscal consolidation and kick-starting the infrastructure development as the key drivers for economic revival.

Debt market participants may continue to expect bond markets to remain in the positive zone and I continue to expect RBI to initiate rate cuts early in the next calendar year.