Oil sustaining above $100 to push inflation, trigger rate hikes: HSBC

CRUDE OIL SUSTAINING above $100 per barrel will push the headline inflation above 6%, the upper level of RBI's tolerance band, and trigger rate hikes, HSBC has said.

- PRESS TRUST OF INDIA

“.. Sustained oil above $100/bbl would push inflation beyond 6%, likely triggering rate hikes,” economists with HSBC said, adding that we are at “crossroads” as Brent has averaged $100 in March.

Amid speculation ahead of next Wednesday's monetary policy announcement on whether the RBI uses interest rates to defend the rupee, the report suggested risks of such