Bankers see RBI hiking rate by 25 bps in next policy

In his recent speech, the RBI deputy governor Subir Gokarn said that inflation has remained high despite policy rate hikes and rise in crude prices has aggravated inflationary pressure. The inflation numbers, which will come out on April 15 are expected to about 8.25% and thus, it is widely anticipated that the RBI may again hike interest rates in order to keep inflation under control.

In addition to that, there are concerns over rising crude rates, which may create pressure on the indices. In an exclusive interview on CNBC-TV18, Arun Kaul, chairman of UCO Bank and TM Bhasin, chairman and managing director of Indian Bank shared their views on inflation and interest rate expectations. According to Kaul, if inflation pressure continues to be the same way, then the RBI will be forced to hike the interest rates. He sees crude as a big problem as it can intensify inflationary pressure further.