|
|
|
RBI likely to hike interest rates by up to 100 basis points in 2022
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 12 Jan, 2022
The RBI is likely to start raising the policy rate in the near future by up to 100 bps in 2022.
"In
the immediate neighbourhood, Pakistan and Sri Lanka have raised policy
rates. We expect India, too, to start raising interest rates soon and
the RBI may raise the policy rate by up to 100 bps in 2022. This can
have negative impacts, at least in the short-term, on both the equity
and bond markets," Anand Rathi Share and Stock Brokers said in a report.
Retail
inflation during December 2021 hardened for the third successive month
to 5.6 per cent but was lower than the consensus expectation. Food
inflation jumped to 4 per cent, from 1.9 per cent in November 2021. Core
inflation, though elevated, softened slightly to 6 per cent in December
2021.
Despite GDP and industrial growth rates being fragile and
volatile, in view of the rising inflation, the RBI is likely to start
raising the policy rate in the near future by up to 100 bps in 2022,
Anand Rathi Share and Stock Brokers said in a report.
Nearly 40 per cent of the 100 countries to watch have already raised policy rates –- by an average (median) of 150 bps, it said.
Inflation
in India is on the higher side compared to most peers. Inflation has
become a key global concern, heightening inflationary expectations and
leading to central bank actions.
The report said already nearly
40 of the 100 countries we watch have raised policy rates by a median of
150 bps. While the rate hikes so far have been more in Eastern Europe
and South America, in Asia too rate hikes have begun in countries such
as Indonesia and South Korea.
The depressed base of the last 12
months and expected pronounced hikes in minimum support prices (MSP) for
agricultural produce (to support rural income) are likely to result in
rising food inflation. The reverse is expected for fuel. We expect core
inflation also to fall. Inflation in the next 12 months is likely to
average around 5 per cent.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|