The RBI on Wednesday hiked the repo rate by an expected 0.35 per cent. In this way, the repo rate has been increased for the fifth time in a row. With this, the repo rate has gone up to 6.25 percent.
HDFC Bank Chief Economist Abheek Baruah said, “Today’s policy announcement indicates that we will see more rate hikes. We expect it to stop at 6.5-6.75 per cent.
UBS India economist Tanvi Gupta Jain also predicted another hike in the repo rate.
He said, “We are expecting another hike of 0.25 per cent in the February policy review. Even if core inflation eases further from 6.8 per cent in October to 5-5.5 per cent by the June 2023 quarter, it will remain above the RBI’s medium-term target of 4 per cent.
Rajni Sinha, chief economist at CARE Ratings, also feels that a 0.25 per cent hike could be done in the February policy review.
Dharmakirti Joshi, chief economist at Crisil Ratings, said rate hikes will happen further. “While core inflation at the domestic level has started declining, upside risks to inflation excluding food and fuel prices remain,” he said.
Soumya Kanti Ghosh, Chief Economic Advisor, State Bank of India Group, said that another increase in the repo rate by 0.25 per cent is expected in February.
Source: navbharattimes.indiatimes.com
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