The Reserve Bank of India (RBI) is expected to continue monetary tightening and raise policy rates again in its policy on Thursday March 17, forecast experts.
Jay Shankar, Chief Economist, Religare Capital Markets said, "The RBI meets next week for monetary policy review. Base case remains the continuation of 'baby-steps' of 25 basis points (bps) tightening - total of 100 bps through 2011. The need for a more aggressive tightening seems to have diminished now, with inflation seen inching down due to the high base of FY11 as well as the lagged impact of previous seven rounds of monetary tightening (by total 175bps) since October 209, assuming of course that the current level of crude is unsustainable".
Ashutosh Datar, Economist, IIFL said, "We expects RBI to tighten rates by another 75 basis points this year and growth to moderate further in FY12 as a result. He added, inflation to moderate from the over 8% currently but do not foresee it falling to sub 7% in the next couple of months, given the strong underlying inflationary pressures in the economy. He expects RBI to tighten rates by another 75 basis points this year and growth to moderate further in FY12 as a result".
Barcklays Capital said, "We expect the RBI to hike the key policy rates (repo and reverse repo) by 25 basis points (bps) each during its mid-quarter review of monetary policy on 17 March".
Rohini Malkani, Economist, Citi India said,"We maintain our view of the RBI hiking by an additional 50 bps in 2011 with a 25 bps hike likely in its review next week and a further 50 bps 2012".
Rohini Malkani, Economist, Citi India said,"We maintain our view of the RBI hiking by an additional 50 bps in 2011 with a 25 bps hike likely in its review next week and a further 50 bps 2012".
source: IRIS
