RBI Repo rate: The Reserve Bank of India can increase interest rates by 0.35 percent in its MPC meeting to be held next week. In the previous two meetings, the central bank has increased the total by 0.90 percent.
RBI Repo rate: The Reserve Bank of India may once again increase the key interest rates in its MPC meeting to be held next week. An American brokerage said that the central bank may increase interest rates by up to 0.35 percent. In a report ahead of the Monetary Policy Committee (MPC) resolution to be held from August 3 to August 5, Bofa Securities said that the RBI will increase interest rates by "calibrated tightening" this time by changing the policy stance. . In the last two policy meetings, the RBI has increased the interest rates by a total of 0.90 percent to control inflation.
Referring to the policy actions since April, when the RBI introduced the fixed deposit facility, the brokerage said the central bank has effectively hiked rates by 1.30 per cent.
How much will the repo rate increase
The brokerage said in its report that we are seeing that the RBI is going to increase the repo rate by 0.35 percent in its monetary committee meeting, which will increase it to 5.25 percent, which is higher than the level before the corona epidemic. . The brokerage said that the central bank may also change its policy stance and make it calibrated tightening.
The brokerage expects the RBI MPC to retain its FY23 consumer price inflation (CPI) and real GDP growth forecast at 6.7 per cent and 7.2 per cent, respectively.
Last week, RBI Governor Shaktikanta Das said that headline inflation, which stood at 7.04 per cent for April, is now peaking.
Interest rates are also possible
The brokerage said that if the monetary committee (RBI MPC meet) adopts a more aggressive stance, then interest rates may also increase by 0.50 per cent, as it did in the June meeting. On the other hand, an increase of 0.25 percent in interest rates also cannot be ruled out.
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