Perspective on expectations from the MPC on rate cut by Paradigm Realty

Mr Parth Mehta, Managing Director of Paradigm Realty on ‘Expectations from the MPC on rate cut’.  

“The GDP estimates for FY2020 has been lowered to sub 7% across board post Q4FY2019numbers nose-dived to 5.8% against 6.6% (in Q3FY2019) & 8.1% (IN Q4FY2018) resulting in overall GDP growth rate to trickle down to 6.8% (FY2019) primarily due to the domino effect of NBFC crisis resulting in automobile sector productions crashing almost by double-digits across various segments in June 2019. Economy is trailing with fragility across sectors with bleak numbers and only saving grace as controlled CPI and crude prices in desirable range. We expect MPC, to cut down repo rates rate further for fourth consecutive time this year by 25BPS to 5.5% to boost the investment cycle, consumer spending and revive the weakening economy.”