RBI to hike interest rates by 25 bps: Rajeev Malik
Published on Thu, Mar 17, 2011 at 09:57 | Source : CNBC-TV18
Updated at Thu, Mar 17, 2011 at 10:29
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RBI to hike interest rates by 25 bps: Rajeev Malik
The Reserve Bank of India is meeting today to review its mid-term monetary policy. Most analysts on the street including Rajeev Malik, senior economist at CLSA, feel that the RBI will raise interest rate at least by 25 basis points.
The Reserve Bank of India is meeting today to review its mid-term monetary policy. Most analysts on the street including Rajeev Malik, senior economist at CLSA, feel that the RBI will raise interest rate at least by 25 basis points.
He said that inflation will remain high on the back of the rising prices of global commodities and it may mar India's growth potential. He thinks that the RBI will hike rates to 7 - 7.25% by December this year, unless global commodities spoil the show.
He expects India's GDP growth rate to remain in the range of 8%- 8.3% in FY12. Improved government response on supply side issues could limit downside risk to growth.
The previous credit policy was released on January 25th and both repo rate and reverse repo rate were hiked by 25 basis points.
