The Reserve Bank of India's Monetary Policy Committee (MPC) is likely to announce a repo rate hike of 35-50 basis points (bps) in its policy statement on August 5 in a bid to tackle elevated inflation, according to a majority of respondents in a Business Standard poll.
Of the 10 institutions polled, three expected the MPC to straightaway raise the benchmark policy rate by 50 bps; three others predicted an increase of 35 bps. Two institutions gave an estimate of a 35-50-bp hike, while one provided a range of 40-50 bps for policy tightening. One institution said the MPC could opt for a 25-35 bp increase. The median of the poll showed a rate increase of 43 basis points.
The rate-setting panel commenced its current monetary policy tightening cycle on May 4, and has raised the repo rate by total 90 basis points to 4.90 per cent since then.
A rate hike of 25 bps would take the repo rate back to 5.15 per cent the level that prevailed before the national lockdown was imposed to curb the spread of Covid-19 in March 2020.
Given that the Consumer Price Index inflation-the RBI's monetary policy anchor remains well above the central bank's target band of 2-6 per cent, a fresh rate hike on August 5 is being considered a certainty by economists and market participants.
The latest data showed that headline retail inflation was at 7.01 per cent in June, marking the sixth consecutive month when the price gauge was above the RBI's mandated zone. The central bank's medium-term target
Diese Geschichte stammt aus der August 01, 2022-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der August 01, 2022-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
ITC hotel demerger divides voting advisory firms
liAS recommends 'against' vote; SES, InGovern suggest 'for'
RBI move on partly paid AIF units puts industry in a bind
Move to help regularise units issued to FPIs amid concerns on fee outgo
BSE to buy S&P's 50% in index JV
Domestic bourse BSE has approved the acquisition of 50 per cent stake in index provider Asia Index (AIPL) from equal joint venture partner S&P Dow Jones (SPDJ) Indices for 30 crore.
A battle for dominance in beauty mkt
A wave of foreign beauty brands is making a splash in the Indian market.
Hospital blaze ignites fire safety review in Delhi
Investigation yet to pinpoint cause 48 hours on SANKET KOUL New Delhi, 27 May The investigation is still ongoing to ascertain what caused the fire that killed six newborns in East Delhi's Baby Care Newborn Hospital.
Banks should not hold up crediting exporters money due to fault of ICEGATE
We have received a system generated email from the DGFT alleging nonfulfillment of export obligation (EO) against many of our advance authorisations and EPCG authorisations issued between 2002 and 2007.
LIC net profit grew 2% in Q4
Wage revision, arrears hit profitability; govt to get ₹3,662 crore as dividend
Holy grail of blended commerce
Ever since the pandemic ended, shoppers have been thronging physical stores.
Governance by disguised legislation
The tyranny of circulars must end to ensure democratic legitimacy of laws and ease of doing business
China creates $47.5 bn chip fund its largest
China has set up the country's largest-ever semiconductor investment fund to propel development of the domestic chip industry, the latest effort from Beijing to achieve self-sufficiency as the US seeks to restrict its growth.