Implication of rate cut
Image Credit: Business Standard
The oscillating sentiment is likely to continue, despite the low valuation of our market now. The cut is expected to trigger flow of fund and economic activities that support growth and improve corporate earnings that drive stock price, especially if government policy and economic reforms will complement this monetary policy move in this new dispensation. Because the rate cut is still small from 14% to ,13.5% the impact will not be much now. But a step in the right direction if we want to reduce unemployment
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