ABC Home
Loans
Investments
Insurance
Payments
Download ABCD

Experience finance made simple on the new ABCD app!

Scan to Download the App

Playstore Appstore
1800-270-7000

Aditya Birla Sun Life AMC Limited

Aditya Birla Sun Life AMC Limited

    Our Menu
    Invest with Us
    Metaverse

    Aditya Birla Sun Life AMC Limited

    Key Highlights of the Second Bi-monthly Monetary Policy Statement, 2019-20

    Jun 11, 2019
    5 mins
    4 Rating

    • Repo Rate – reduced by 25 bps to 5.75%

    • Reverse Repo Rate – reduced by 25 bps at 5.50%

    • Bank Rate & Marginal Standing Facility (MSF) Rate – reduced by 25 bps at 6.00%

    • Cash Reserve Ratio – The CRR of scheduled banks remains unchanged at 4.0% of their net demand and time liabilities (NDTL).

    • Monetary Policy stance changed to ‘|accommodative.’

    These decisions are largely focused on enhancing systemic liquidity to support growth.

    RBI Forecast was broadly unchanged with 1HFY20 Consumer Price Index (CPI) inflation at 3.0-3.1% and 2HFY20 inflation at 3.4-3.7%.

    FY2020 GDP growth forecast was reduced by 20bps to 7.0%, with 6.4-6.7% growth in 1HFY20 and 7.2- 7.5% in 2HFY20, with risks evenly balanced.

    Outlook

    Investor with short term horizon may look into Ultra short term space where we continue to be constructive in Money Markets, Ultra short term & Low duration funds over liquid funds.

    Investor with longer horizon may consider Aditya Birla Sun Life Corporate Bond Fund and Aditya Birla Sun Life Banking & PSU Debt Fund in the Short Term space.

    Source: Second Bi-monthly Monetary Policy Statement, 2019-20, Reserve Bank of India

    Mutual Fund investments are subject to market risks, read all scheme related documents carefully.