RBI unlikely to rush into tightening; Dec rate hike possible, Icra's Aditi Nayar
The Reserve Bank of India (RBI) is unlikely to rush into monetary tightening despite mounting inflation risks from higher fuel prices and monsoon uncertainty, a rating agency said on Monday.
The Reserve Bank of India (RBI) is unlikely to rush into monetary tightening despite mounting inflation risks from higher fuel prices and monsoon uncertainty, a rating agency said on Monday.
A rate hike is possible only towards the end of the year if price pressures persist.
"We don't think that the MPC (monetary policy committee) will go in for a rate hike very soon. This is a supply shock. It is very different from the Covid shock, which was a simultaneous supply and demand shock," Aditi Nayar, Chief Economist at Icra, said.
