See more rate hikes in Oct and ahead: Samiran Chakrabarty

Samiran Chakrabarty, Head - Research, StanChart Bank speaking to CNBC-TV18 in the wake of 25 bps rate hike by RBI said, this policy seems to have no tolerance for inflation at all. However, growth slowdown has been given more tolerance than anticipated due to uncertain global developments.

"So, we feel the policy is little more hawkish than otherwise expected. This could mean that they would be more rate hikes going forward in October and ahead," Chakrabarty explained.Chakrabarty is not too worried about FY12 GDP forecast of 7.7% and believes on track to a number close to that. However, if interest rates stay elevated around till first few quarters of FY13 then a downside risks may be seen to 8.3% growth forecast for FY13, he added. Also Read: Not sure what RBI is trying to achieve, says FICCI Below is the edited transcript of Chakrabarty's interview with Latha Venkatesh of CNBC-TV18. Also watch the accompanying video. Q: No question that the Reserve Bank had no choice, they had to hike given the kind of inflation numbers we have been getting. What is your take on this? A: Yes, the rate hike was almost given response and everybody concentrated on the forward looking guidance. It seems to strike to me is that the inflation tolerance is not at all there. There is bit of more tolerance for growth slowdown than what one would have anticipated particularly from uncertain global developments. That