Beyond rate calls, markets are keenly awaiting RBI’s decision on the FPI debt limit enhancement. All in all, forward guidance of the monetary policy committee (MPC) is expected to remain unchanged from the last policy. Beyond rate calls, markets are keenly awaiting RBI’s decision on the foreign portfolio investment (FPI) debt limit enhancement. Unless the increase in FPI debt limit happens for the general category, the euphoria could be limited. Anyways, any such increase in FPI debt limit will be probably offset by reduction in statutory liquidity ratio/held to maturity (SLR/HTM) limits, which is also due for review in the coming policy.

Source: Mint March 29, 2018 22:07 UTC