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Reserve Bank to maintain status quo at April meet: Axis Bank Chief Economist

Saugata Bhattacharya said he had earlier expected a tightening action at the policy meet scheduled for April 6-8 but the increased uncertainties on the geopolitical front due to the Russian invasion of Ukraine and its impact on commodity prices makes him now think that RBI will defer such an action.

March 28, 2022 / 01:48 PM IST

Heightened geopolitical uncertainties will lead the Reserve Bank’s rate-setting panel to opt for a status quo at the next week’s meeting, Axis Bank’s chief economist Saugata Bhattacharya said on Monday.

Bhattacharya said he had earlier expected a tightening action at the policy meet scheduled for April 6-8 but the increased uncertainties on the geopolitical front due to the Russian invasion of Ukraine and its impact on commodity prices makes him now think that RBI will defer such an action.

He said the central bank’s Monetary Policy Committee (MPC) may hike rates in the second half of FY23 by up to 0.50 per cent.

Bhattacharya said the recent events have led to "some weakening of growth and hardening of inflation”, and the RBI’s estimates on both for the new fiscal will be very keenly looked at by analysts.