We expect 25 bps rate cut now and one more in June or July: Murthy Nagarajan, Quantum AMC

In a chat with ET Now, Murthy Nagarajan, Head Fixed Income, Quantum AMC, says the rupee will trade in the broad range of around 65 to 69 type of levels because RBI will try and mop up some amount of dollars from the market

ET Now: What sort of rate cut are you expecting from the RBI governor at this time and what does it indicate for the future?

Murthy Nagarajan: We expect RBI to cut rates by 25 bps and state that he will carry out further rate cuts going forward. Another rate cut after the monsoons for the first advance estimate of monsoons maybe in June or July when you can expect another rate cut. There is also a section of the market which says that he may effect a 50 bps rate cut at one go right now. But we feel that if he does that, then there will be some risk on the inflation side as well. One, we do not know how the monsoon will pan out this year also. Commodity prices have increased by almost 15 to 20 per cent from the 

Click here to read more.