RBI Governor Shaktikanta Das gives the first monetary policy address of 2023 and the last one for this fiscal, in which he's expected to announce one of the final interest rate hikes for now, as inflation begins to cool down. Experts expect the key policy rate to be hiked by 25 bps. RBI has hiked key rates by 225 bps since May 2022 to fight inflation which was persistently high. Tune in!
The comments from FM come at a time when the RBI has hiked key rates by 225 bps since May last year
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Goyal further said that the policy rate hikes have largely reversed pandemic-time cuts but the real rate remains low enough not to hurt the growth recovery
Tackling inflation risks is now front and centre and the RBI is expected to raise the policy rate by at least 50 bps in the June policy meeting
Indian economy is now on a much stronger footing and rate hikes may not be all negative for equity markets
Investors are advised to go long at the short end curve by investing in short term plans having an average maturity ranging from 2 to 3 years.
All eyes are on the monetary policy review by the Reserve Bank of India on March 17. However, there is a growing concern that RBI may further hike rates in this year.