RBI kept all key rates unchanged in the monetary policy review, while repo rate was kept unchanged at 8%, Cash Reserve Ratio (CRR) and reverse repo rate were maintained at status quo of 4% and 7% respectively.
Despite some positive movement in more recent data, industrial activity continues to be a drag on the economy, with retrenchment in both consumption and investment demand reflected in the contraction of output of consumer durables as well as capital goods.
Retail inflation measured by CPI moderated for the third month in succession in February 2014, driven lower by the sharp disinflation in food prices, although prices of fruits, milk and products have started to firm up.
RBI expects the CAD to be about 2.0 per cent of GDP. "Most recently, however, export growth has slowed, partly because of slowdown in demand in partner countries as well as a softening of prices of exports of petroleum products and gems and jewellery.
There will also be a downward statistical pull on CPI inflation exerted by base effects of high inflation during June-November 2013.
RBI has projected real GDP growth to pick up from a little below 5 per cent in 2013-14 to a range of 5 to 6 per cent in 2014-15 albeit with downside risks to the central estimate of 5.5 per cent.
>>> Nifty <<<
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6750 - Channel resistance, if able to cross may help bulls to gain strength once again.
>>> Bank Nifty <<<
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Bank Nifty broken the trend line. Lets Wait and See. Cheers!!!
