Given the tone of urgency in RBI's statement to support the altered inflation-growth dynamics, "we now revise our call and expect the RBI to hike repo rate by an additional 60 bps in the rest of FY23"
The RBI will likely raise the repo rate by at least 50-75 basis points through FY23, and by another 50 basis points in FY24, the ratings agency said
While it termed current inflation as transitory, MPC also expects it to edge up to near-6% levels towards 2021-22 end, highlighting stickiness of inflation in uneven economic recovery
After a year of high inflation-low growth, a sharp dip in food inflation tames the headline number
High consumer inflation likely till September
Among macroeconomic data announcements, retail and WPI inflation numbers will be released on Monday and Tuesday, respectively
It will also maintain liquidity so that govt borrowing doesn't push yields up
RBI is also watching out for inflationary impact of GST, even though food products were exempted