LIVE UPDATES: RBI MPC Meeting – 40 bps repo rate hike, predicts Chief Economist, Mahindra and Mahindra |​ Expectations – Latest news

dr. Sachchidanand Shukla, Chief Economist, Mahindra and Mahindra

“RBI’s MPC is expected to raise its repo rate by 40 bps in its upcoming policy meeting as inflationary pressures remain above MPC’s comfort levels for six straight months. After the US Fed hiked its key rate by 75 bps in its latest policy meeting, it is expected that the RBI will raise interest rates for the third time this year, but MPC’s rise may be slow as recent prints point to a easing of inflationary pressures With the decline in global commodity prices, CPI inflation appears to have largely peaked current and is expected to see a downward movement, as a result, we expect CPI printing to average around 6% in Q4 23. The CRR is likely to remain unchanged under this policy, as excess liquidity hovering around 1.5% of the NDTL mark However, liquidity will remain limited around current levels due to a decline in forex reserves amid global pressures, pick-up in government spending and higher credit growth. a number of months. With the ongoing economic recovery, we expect GDP growth to average 7-7.2% and inflation to 6.6% in FY23.”

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