RBI to hike repo by 25 bps, rollback MSF today: Poll
A poll conducted by CNBC-TV18 shows that the street is unanimously expecting the RBI to hike the repo rate by 25 basis points in its October 29 monetary policy meeting.
October 29, 2013 / 10:14 IST
The market is unanimous in its expectations from RBI's credit policy meet today. A CNBC-TV18 poll reveals that Governor Raghuram Rajan will walk his talk and hike repo rate by 25 basis points (bps) and leave CRR unchanged.
Around 90 percent of economists polled also believe that Rajan will roll back the Marginal Standing Facility to its earlier rate of 8.75 percent. Only 10 percent feel that the central bank will wait before cutting the MSF. Also read: RBI won't spoil Diwali by hiking repo rate now: ReligareThe market, however, remains divided over raising the cap on banks' borrowing from the repo window. While 60 percent of respondents believe this cap will increase, only 40 percent believe otherwise.On growth and inflation forecasts, there is an overwhelming majority who believe that the RBI will revise its forecasts. There is a undisputed view that FY14 GDP growth forecast will be cut to 5-5.5 percent from the current 5.5 percent. Around 70 percent expect the RBI to hike March-end inflation forecast to up five percent to as much as six percent. Only 30 percent expect inflation forecast at five percent.
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