Introduction: The central bank will hold its quarterly monetary policy review today. In June, the RBI raised the repo rate by 75 basis points in two steps and announced a 50 basis point increase in the cash reserve ratio (CRR) to 8.75 percent. The Reserve Bank of India (RBI) in its review meeting today is expected to raise its key lending rate by 25 or 50 basis to cool inflation from nearly 12 percent.
What will be the central bank’s stance like? Ganesha takes a look at the present scenario.
Transiting Planets on July 29, 2008 at 0530 hours
Sun– Cancer at 12 degrees
Moon– Taurus at 25 degrees
Mars– Leo at 22 degrees
Mercury– Cancer at 11 degrees (combust)
Jupiter– Sagittarius at 21 degrees (R)
Venus– Cancer at 26 degrees
Saturn– Leo at 13 degrees
Rahu– Capricorn at 25 degrees
Ketu– Cancer at 25 degrees
Note that transiting Moon is not in the second house of India’s chart, the first and the primary factor which leads Ganesha to think negatively about the short term quarterly policy. Moreover, Moon (significator of mind) being placed twelfth from India’s second house of finances and financial policy indicates that the policy may infact reduce the nation’s reserve and there may be a flight of foreign funds out of the country.
Reserve Bank may further tighten monetary policy by increasing rates. The reason being, the lord of the second house of finances of India’s chart is deeply combust, in its transit on July 29, 2008. This means that decisions of a nature that are not good for the national wealth may be taken.
Also, look at the Moon-Venus aspects where transiting Moon is exactly sextile to transiting Venus. Moon is the lord of India’s fourth house of domestic peace and happiness and Venus is the lord of the Ascendant which indicates that a policy will definitely be designed to curb inflation and increase the ruling party’s populism.
Ganesha feels that this quarterly monetary policy will definitely be populist and anti inflationary, benefiting the masses, but very decisive for the stock and commodity markets.
Wishing India a good fiscal third quarter.
The GaneshaSpeaks Team
Description: RBI is scheduled to announce its quarterly review of monetary policy today. In June, the RBI raised the repo rate by 75 basis points in two steps and announced a 50 basis point increase in the cash reserve ratio (CRR) to 8.75 percent. According to a recent survey, Reserve Bank in its review meeting today is expected to raise its key lending rate by 25 or 50 basis to curb inflation.
Keywords: RBI, quarterly review of monetary policy, RBI’s quarterly review, hike in interest rates, Ganesha, astrology, prediction, July 29, 2008, inflation, stock and commodity markets.