RBI may raise interest rates by 50-75 basis points in current tightening cycle: Bank of Baroda report
The Reserve Bank of India may raise interest rates by a cumulative 50-75 basis points in the current tightening cycle, according to a Bank of Baroda report. It also highlights strong consumption, mixed tax collections and concerns over rural and urban confidence
New Delhi: The Reserve Bank of India (RBI), which raised policy rates for the first time by 25bps in nearly four years with a change in stance to calibrated tightening from neutral, is expected to act in a pre-emptive manner and “we expect a cumulative 50-75bps hike in this tightening cycle”, a report said on Saturday.
The glut in system liquidity has been absorbed by RBI’s measures and “we expect RBI to hike rates in next policy,” said the report by Bank of Baroda.
New Delhi: The Reserve Bank of India (RBI), which raised policy rates for the first time by 25bps in nearly four years with a change in stance to calibrated tightening from neutral, is expected to act in a pre-emptive manner and “we expect a cumulative 50-75bps hike in this tightening cycle”, a report said on Saturday.
The glut in system liquidity has been absorbed by RBI’s measures and “we expect RBI to hike rates in next policy,” said the report by Bank of Baroda.







