The Reserve Bank of India will concentrate interest rate hikes over the coming months in a relatively short tightening cycle, according to a Reuters poll of economists who expect the repo rate to reach its terminal level early next year.
Following a surprise rate rise on May 4, several members of the Monetary Policy Committee called for more in upcoming meetings this year to control sticky price pressures, which hit an eight-year high last month.
The repo rate was expected to reach its pre-pandemic level of 5.15% or higher next quarter, according to 41 of 47 respondents. It will end the year at 5.50%, the median showed, 110 basis points above where it is now and 19 of 47 saw it even higher. Indeed, the predicted tightening path for next year was more subdued with only 40 basis points pencilled in the first half before a pause, poll medians showed.
While inflation looks set to remain elevated, reflecting high global energy and food costs, economic growth prospects have started to look bleak. GDP growth slowed to its weakest in a year last quarter on a year ago, the third consecutive slowdown.This may lead the RBI - which had long prioritised growth over inflation, holding rates steady until abruptly raising them at an unscheduled meeting - to consider ending this tightening cycle less than a year after starting it.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
EUR/USD Outlook: Record EU Inflation, EUR/USD Risking a PullbackEuro Area inflation rose to 8.1% in May, up from 7.5% and above expectations of 7.7%. The core figure also printed above expectations at 3.8% vs 3.5% and thus reaffirms the case for ECB tightening in Q3. Get your market update from JMcQueenFX here:
Lire la suite »
Asian markets slide amid COVID, rate-hike worriesAsian shares declined Thursday, echoing a retreat on Wall Street as investors fretted about higher interest rates and rising coronavirus cases in parts of...
Lire la suite »
Wall Street has an expiration date for the dollar's epic rallyTurns out, the dollar often weakens during the year after benchmark interest rates start rising.
Lire la suite »
Higher revenue from water bills, federal relief money power Houston’s adopted $5.7B budgetHouston’s $5.7 billion budget for the next fiscal year includes a big jump in revenue...
Lire la suite »
Sheryl Sandberg, longtime executive at Facebook, steps downSandberg joined Google in 2008, four years before Facebook went public.
Lire la suite »
Apple insider says AR/VR headset won’t launch at WWDC, release coming next yearA well-known insider says Apple will not launch the mixed reality headset at WWDC 2022 next week, but the glasses are coming next year.
Lire la suite »