USA FOMC hinted that that they will print till infinity & buy all under water bonds of cronies (worth 20 cents on the $ ) at full price as a market support mechanism....
To start, the FOMC did what most market observers were expecting: it kept the target range for the fed funds rate near zero and maintained the
pace of asset purchases by at least $120 billion per month. The central bank also remained committed to the view that recent inflation pressures have largely been
due to transitory factors.
The hawkish part stemmed from the
Fed's interest-rate projections signaling a rate hike by the end of 2023,
versus a prior indication of leaving rates unchanged through 2023.
What's more, the Fed increased the interest on excess reserves to 0.15% from 0.10%, and the reverse repurchase rate was increased by five basis points to 0.05%
So RBI wont inrease our interest rates (though inflation is close to 7-10%)
as increasing interest rate will collpse our banks (who have hidden billions of bad loans under the carpet)
Real estate may pick at current 6.9%loan interest rates offerd.
Commodities will keep the upward bias.
Our Govt raised excise duty on petrol disel 2-3 fold when crude collapsed to $15-20. Now crude back at 80$, they dont want to reduce excise duty.
So fuel inflation jacking up all food & essential products. ( but according to RBI also inflation is transitory!)
Senior citizens,Retired &
Savers are as usual sacrificed at the altar of the Growth God.
No big sell off.