Comments
The hike in repo and reverse repo rates by 25 basis points each is in line with expectations, given that rising inflation related to non-food manufactured products stems from both domestic demand-side pressures and the pass-through of increases in the global prices of fuel and other commodities to domestic prices. In the event that inflation becomes more generalised and persists at elevated levels, with sustained pressure from oil and commodity prices, the RBI may hike rates further over the next few months.
(The author is MD, ICRA Ltd.)
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.