RBI to go beyond 25 bsp hike? CNBC-TV18 poll says unlikely
RBI governor Subbarao will be walking a tightrope this time. With inflation close to double digits, an increasing number of economists are asking him to break from the calibrated 25 basis point hike that he has been doing and give the market a stronger dose. Yet that's not the majority expectation.
April 30, 2011 / 17:42 IST
RBI governor Subbarao will be walking a tightrope this time. With inflation close to double digits, an increasing number of economists are asking him to break from the calibrated 25 basis point hike that he has been doing and give the market a stronger dose. Yet that's not the majority expectation. CNBC-TV18's Vidhi Godiawala and Gopika Gopakumar report.
60% of those polled by the channel expect the RBI to raise the repo and reverse repo by 25 basis points each, but 40% expect a 0.5% hike.The governor's growth and GDP target will be important. Only 10% expect he will toe the government's line of 9% while a majority of 60% expect he will forecast GDP at less than 8.5%.On inflation analysts are deeply divided. 10% expect he will forecast inflation around 8% by March. 30% of the respondents see the governor forecasting inflation at 6.5 to 7% and 35% even expect his forecast to be below 6.5%. But the poll revealed that 5% inflation has been erased from public memory.The high inflation expectations has meant that 90% of those polled expect at least 75 basis points more in rate hikes of which a good 55% expect 100 basis point hikes or more.Will the May 3 rate hike be immediately translated into higher rates for you and me?
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