Japanese brokerage firm Nomura also estimates that RBI’s policy rates may increase by 0.25 percent in August’s monetary policy review meeting.
Rising prices of crude oil can further inflame inflation in the country. For this reason, the Reserve Bank of India (RBI) may have to be forced to increase policy rates by 0.25% in the two-month monetary review policy to be held in the month of August. This is what a foreign brokerage firm said. Significantly, the upcoming monetary review policy is taking place one day and this time the meeting will be held for three days.
The firm also said that the top bank (RBI) could retain the status quo in policy rates in the upcoming monetary review which is to be on June 4. Australian Brokerage Macquarie said, “We now expect that the RBI will start the cycle of hike cycle before the estimate and it is expected that the first hike will be 0.25% in the month of August, whereas we had earlier estimated that the first year of 2019 It will be seen in the quarter. “
The point of note here is that the sharp fall in crude oil prices, rising current account deficit and a huge decline in the price of the rupee are a major problem. Japanese brokerage firm Nomura has also estimated that RBI’s policy rates could increase by 0.25 percent in August’s monetary policy review meeting.
He said, “According to our base rate (55 percent profitability), we expect the RBI to maintain the status quo in policy rates in the next meeting. However, he can move his attitude towards neutral to return home. In both the meetings of August and October, each one can see an increase of 0.25 percent. “
BY:- Abhay kushwaha