 "RBI, interest rate hike, repo rate")
Prior to the February Monetary Policy Committee (MPC) meeting, an overwhelmingly strong market consensus expected “one last hike” by the Reserve Bank of India (RBI). A very similar consensus of “one last hike” seems to be in place even before the April MPC meeting. However, one feels that arguments in favour of a pause in April are strong. Some of these arguments were flagged by the two MPC members, who voted against a rate hike even in February.
Admittedly, the last two monthly Consumer Price Index (CPI) prints were higher than expected. However, most forecasters, including the RBI, expect CPI
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper
