Nomura Expects 25 Bps RBI Rate Hike in December, Says Minutes Focus on Growth, Inflation, Not Forex
3 Articles
3 Articles
MPC minutes: Two more interest rate hikes on cards, maybe even a third
Market participants and economists now expect a 25-bps increase in the December and February reviews. A further 25-bps increase in April isn't ruled out if crude oil prices remain persistently above $100. One basis point is a hundredth of a percentage point. "After the minutes were released, we think the probability of a consecutive hike in December has increased. Our terminal rate forecast is now at 6% for this hiking cycle and we expect the cy…
Nomura expects 25 bps RBI rate hike in December, says minutes focus on growth, inflation, not forex
While the minutes focus on growth and inflation, Governor Sanjay Malhotra's recent comments hinting at interest rate defence of the currency have fuelled market expectations of an outsized rate hike in December, Nomura said.
Economists on Thursday maintained their stance for a second consecutive repo rate hike, as the minutes of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) October meeting showed the central bank's stance to be more hawkish than previously. Economists say that given rising inflation and continued pressure on the rupee, the repo rate could be increased by up to 50 basis points in December as well. An SBI report said that an additi…
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