RBI rate hike of 25 bps in line with D&B expectations

In line with D&B expectation, RBI resorted to a 25 basis point hike in the repo rate in its mid-quarter policy review.

June 16, 2011 / 15:37 IST

By Dr. Arun Singh, Senior Economist, Dun & Bradstreet India

In line with D&B expectation, RBI resorted to a 25 basis point hike in the repo rate in its mid-quarter policy review. Persistence of inflation way above the comfort levels and the still incomplete pass through of global fuel prices in the domestic market has been increasing the concerns of sustaining growth in the medium to long term. Moreover, the upward trend in the non-food manufactured products inflation still reflects the prevailing demand side pressures. The RBI is thus, expected to undertake another round of policy rate hike before taking a pause. As a result, going ahead, we anticipate the economic activity, both the investment as well as the demand, to remain subdued.

first published: Jun 16, 2011 03:32 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

Al Edge Newsletter On Saturdays

Find the best of Al News in one place, specially curated for you every weekend.
MC Tech 3 Newsletter Daily-Weekdays

Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347