RBI likely to raise rate by 25 bps
The Reserve Bank of India (RBI) is widely expected to raise the benchmark rate by a quarter percentage point when the policy is announced Friday, according to an ET poll conducted among 25 market participants.
India???s monetary policy makers may raise rates for the third time in the current cycle later this week, with the central bank seeking to maintain a delicate balance between meeting the liquidity needs of a nervous capital market and restraining inflation amid a steep fall in the rupee???s value.?
The Reserve Bank of India (RBI) is widely expected to raise the benchmark rate by a quarter percentage point when the policy is announced Friday, according to an ET poll conducted among 25 market participants.?
Indeed, the pace of consumer price rise has softened in India. But experts are factoring in the possibility of future price rises on account of a steep depreciation of the local currency and oil price shocks.?
???The RBI is facing a conundrum after a long gap,??? said Abhimanyu Sofat, head of research at IIFL Securities. ???However, liquidity may freeze if 50 bps rate hike is announced without short-term liquidity measures.????
Source: https://economictimes.indiatimes.com/markets/stocks/news/rbi-likely-to-raise-rate-by-25-bps/articleshow/66022425.cms
