Jim Walker, managing director of Asianomics Limited, in an interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee, said that a hike of 50 basis points has come like a surprise.
March has been hard on the Indian consumers. Inflation for the month came in at a sharply higher 8.98 % surging past the expected 8.3-8.4 %. CNBC-TV18's Latha Venkatesh and Gopika Gopakumar find out why.
Domestic market has taken a sharp downturn on spiking oil prices. The NSE Nifty closed at 5367.5 down 79.25 points or 1.46% and BSE Sensex ended at 17878.81 down 271.06 points or 1.49%. Most analysts were watching crude oil movements carefully thinking that crude will bounce back with renewed energy and hurt market sentiments.
The Reserve Bank of India hiked key policy rates by 25 basis points in a bid to keep a tab on rising inflation. Most analysts expected a similar result from the policy including Chief Economic Adviser Kaushik Basu.
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.