RBI MPC Live: Arjuna eye on inflation, monetary policy to support growth, says Das; repo rate hike as expected | The Financial Express

RBI MPC Live: Arjuna eye on inflation, monetary policy to support growth, says Das; repo rate hike as expected

RBI MPC Meet Live Updates: Reserve Bank of India Governor Shaktikanta Das announced that the RBI Monetary Policy Committee has raised repo rate by 35 basis point to 6.25%

RBI MPC Live: Arjuna eye on inflation, monetary policy to support growth, says Das; repo rate hike as expected
RBI MPC Meet Live: Das likely to announce further repo rate hikes amid elevated inflation, geopolitical tensions, and fears of a global recession.

RBI Monetary Policy Committee Meeting Live Updates: Reserve Bank of India Governor Shaktikanta Das announced that the RBI Monetary Policy Committee has raised repo rate by 35 basis point to 6.25% amid elevated inflation, geopolitical tensions, and fears of a global recession. While the FY23 inflation forecast is kept unchanged at 6.7% despite a minor upward revision to Q3FY23 & Q4FY23 forecasts, the GDP growth forecast for FY23 has been cut from 7% to 6.8% amid global headwinds.

Monetary Policy Statement by Shri Shaktikanta Das, RBI Governor - December 07, 2022
Live Updates
14:37 (IST) 7 Dec 2022
MPC will remain data dependent going forward

“MPC, much in line with market expectations, delivered a 35bps rate hike, however it retained stance of withdrawal of accommodation where many expected a neutral stance. MPC seems to have repeatedly drawn attention to sticky core inflation with continued uncertainties both in global and domestic arena. Two members dissented against continued stance and one member dissented against the rate hike, reflecting improved forward outlook with lower rude and other commodity prices in the recent times. Growth projections were lowered marginally while emphasising continued focus on supporting growth. Going forward, MPC will remain data dependent and thus recent improvement in macro environment like slowing pace of rate hikes globally, softer commodity prices like crude and slowing growth may lead to further slow down in pace of rate hikes.-Mahendra Jajoo, CIO, fixed income, Mirae Asset Investment Managers

13:55 (IST) 7 Dec 2022
Odds for any further significant rate hikes lower

RBI’s policy decision to hike rates by 35 bps is well-calibrated and on expected lines. With today’s rate hike, we believe the odds for any further significant rate hikes would be lower, as it would lead to terminal policy rate expectations being beyond the comfort zone for the country. Despite growth forecasts being nudged lower by MPC, what was more reassuring was MPC’s acknowledgment of India’s growth being resilient in the context of global slowdown and that the future prospects for the Inflation trajectory are likely to be lower. We believe with imminent global growth slowdown and the inflation trajectory treaded lower, the bar for aggressive rate hikes in the ensuing policies is much higher and hence we expect that ‘the current rate hike cycle is almost done.”-Niraj Kumar, Chief Investment Officer, Future Generali India Life Insurance Company Ltd.

13:29 (IST) 7 Dec 2022
RBI MPC review

“The RBI MPC raised the repo rate by 35 basis points to 6.25% with 5-1 vote. It continued its stance of withdrawing accommodation. This is in line with the street estimates. The RBI has raised rates by a cumulative 225 bps since the start of the tightening cycle in Apr’22, way below the US Federal Reserve’s 350 bps increases over the same period. The RBI has already intervened to support the rupee and further rate rises are likely to support the currency and to curtail underlying inflationary pressure. The RBI maintained inflation forecast at 6.7% for FY23 and said the battle against inflation is not over yet. The central bank lowered the growth expectation to 6.8% from 7% seen previously. Though growth rate downward revision and rate hike would be seen as negative for markets, while governor’s positive view on improvement ahead and peak out of inflation now onwards provide some relief to investors. On the other hand, a few banking reforms and launch of digital currency would be key positive for the sector.”-Mitul Shah – Head of Research at Reliance Securities

13:16 (IST) 7 Dec 2022
RBI monetary policy highlights

“The RBI Monetary Policy Committee (MPC) on Wednesday continued with interest rate hikes as it raised the repo rate by 35 bps to 6.25%. Reserve Bank Governor Shaktikanta Das emphasized that India’s economic growth at 6.8% has been robust and amongst one of the best in the world. With a good monsoon, increase in manufacturing activity and robust services growth, economic growth outlook looks stable. However, the MPC still cut FY23 GDP growth forecast to 6.8%. Das emphasised that the policy has ‘Arjuna’ eye on inflation, and is focused on withdrawal of accommodation while being committed to ensuring adequate liquidity to support growth. Given the continued global headwinds, RBI ensured that it will remain nimble, and take action wherever warranted.”

7 key announcements by RBI Governor Shaktikanta Das

12:46 (IST) 7 Dec 2022
RBI aligned to its global counterparts

“Fed has already communicated last week that it would now follow a balanced approach between containing inflation and fostering growth. This is an indication that we might be nearing the rate hike cycle. With RBI also now choosing to moderate the rate hike from 50 bps to 35 bps, it is a clear signal that India's central bank is aligned to its global counterparts. This gives India Inc and its capital markets a strong foundation to plan the capex cycle which is critical for ushering into the next phase of growth”-Rohin Agarwal, Vice President at Avener Capital

12:45 (IST) 7 Dec 2022
Repo rate unlikeluy to cross 6.5% in current cycle

“The RBI’s shifting to a lower gear of rate hike in December is in line with expectation. After the heavy frontloading of rate hikes during the first half of the financial year, the repo rate now – at 6.25% after today’s hike – is the highest in almost four years. In absence of fresh surprises, one does not expect the repo rate to cross the 6.5% mark in the current hiking cycle. That might mean a real repo rate of over 1% and a nominal spread of about 1.5% between Indian and US policy rates by the mid of 2023. It is heartening that the RBI sounded more supportive as regards future need of liquidity of the banking system and productive sectors of the economy”.-Siddhartha Sanyal, Chief Economist and Head of Research, Bandhan Bank

12:42 (IST) 7 Dec 2022
Space for further tightening

“Overall, the policy seemed slightly hawkish on the margin and indicated that there may be space for further tightening, although it will depend on the inflation trajectory and the terminal rate for the US Federal Reserve. RBI governor also mentioned that market participants must wean themselves away from the overhang of liquidity surpluses which means market should be prepared for further tighter liquidity condition. Post the policy announcement bond yields hardened a bit. With corporate bonds spreads still being very tight, we may witness some increase going forward. We prefer the short-medium term part of the yield curve.”-Sampath Reddy, Chief Investment Officer, Bajaj Allianz Life Insurance

12:17 (IST) 7 Dec 2022
Hawkish or dovish – what am I? RBI Governor Shaktikanta Das’ riddle to media, ‘informed circles’

RBI Governor Shaktikanta Das in his post-MPC meeting address, wherein he announced a repo rate hike of 35 bps, threw a riddle at the media and ‘informed circles’ to decide whether the December policy is dovish or hawkish. “There is a lot of discussion in the media and in various informed circles about whether the MPC is hawkish or dovish. I leave it to you to decide whether the policy statement is hawkish, dovish or something else,” Das said.

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11:50 (IST) 7 Dec 2022

“With the RBI's announcement of the fifth consecutive rate increase, loan rates will increase even further. As the gradual tightening of interest rates ends, it is anticipated that capital inflow would improve even further. Given the concerns about Chinese demand for oil, the price of petroleum has fallen from its heights and is unlikely to test new highs. While core inflation is anticipated to stay sticky, crude prices will be kept in check thanks to the strengthening of the rupee and the decline in Chinese demand.”

Raghvendra Nath, MD, Ladderup Wealth Management

11:44 (IST) 7 Dec 2022
NBFC sector negatively impacted by rate hikes

“The rate increase by the MPC is in line with expectations. The NBFC sector has already been negatively impacted with the rate increase cycle during the year, and the near term outlook for NBFCs will be further negatively impacted with this hike. Cost of borrowings will increase further, especially given that a majority of the funding of NBFCs now comes from Banks. This will obviously have a negative impact on their growth and affect downstream borrowers (largely the MSME sector), both in terms of rates as well as availability of credit.”

Rahul Chander, MD & CEO, LivFin

11:42 (IST) 7 Dec 2022
Repo rate gone back to pre-Covid levels

“The RBI’s action in raising the repo rate by 35 bps is in line with market expectations and their consistent objective to rein in inflation. With the PMI (which reflects business confidence) and other indicators being positive, I expect capex to continue in spite of higher interest cost and do not see economic growth being impacted in any significant way. Repo rate has in reality only gone back to pre-Covid days as emergency measures taken due to Covid are being unwound – this cannot be seen in any negative light.”

K V Srinivasan, Executive Director & CEO, Profectus Capital

11:28 (IST) 7 Dec 2022
RBI expected to maintain status quo

“As expected the MPC has hiked key rates by 35 bps. The repo rate is now at a more than 4-year high. The RBI has hiked rates for the fifth consecutive time this calendar year.

The central bank is expected to maintain the status quo in H1CY23, the cumulative rate hike has been 225 bps till now in this cycle. The economic growth, the trajectory of crude oil, inflation, and the geopolitical situation will guide RBI's action in H2CY23.”

Nish Bhatt, Founder & CEO, Millwood Kane International

11:22 (IST) 7 Dec 2022
RBI’s strategy to support growth is realistic

“Taking a balanced view on the robust macroeconomic indicators but lingering inflation, the RBI has gone in for a milder increase in repo rate by 35 basis points. This is in line with the market expectations as RBI proposes to continue in its stance of withdrawal of accommodation. The approach of RBI to keep its focused eye to bring down inflation in a phased manner, while supporting growth is a realistic strategy for ensuring gradual revival in these uncertain times. “

Jyoti Prakash Gadia, Managing Director, Resurgent India

11:17 (IST) 7 Dec 2022
Rupee story: One of India’s resilience and stability

“Through the episode of US dollar appreciation, the INR’s movements have been the least disruptive, relative to peers. In fact, the INR has appreciated against all other major currencies except a few4. Cross-country comparisons of exchange rate movements are often made on an inflation-adjusted basis or what is called in real effective terms. On a financial year basis (i.e., from April 2022 to October 2022), the INR has appreciated by 3.2 per cent in real terms, even as several major currencies have depreciated. The story of the INR has been one of India’s resilience and stability.”-RBI Governor

11:15 (IST) 7 Dec 2022
MPC decisions on expected lines

“As expected, the Monetary Policy Committee increased the policy rate by 35bps with a majority decision of five out of six members voting for it, and more importantly, re-iterated its intention of withdrawing accommodative policies with a majority decision of four members out of six voting for it. The RBI has reduced India's growth forecast for FY23 from 7% to 6.8%, but India remains one of the fastest-growing major economies globally. The RBI governor exhibited confidence in India's growth trajectory but mentioned that it is crucial to be vigilant to the secondary effects of high global commodities, especially energy and food prices. We believe the MPC decisions today are on expected lines and would not have any major impact on Indian markets, purely based on decisions announced today.”-Shaktikanta Das

11:10 (IST) 7 Dec 2022
Pace of transmission of monetary policy actions closely watched

“The pace of transmission of monetary policy actions to lending and deposit rates has quickened in the current tightening phase, beginning May 2022. The weighted average lending rates (WALRs) on fresh and outstanding rupee loans have increased by 117 bps and 63 bps, respectively, during the period May to October 2022. On the deposit side, the weighted average domestic term deposit rate on fresh and outstanding deposits increased by 150 bps and 46 bps, respectively, during the same period. We are keeping a close watch on this process of transmission”-Shaktikanta Das

11:06 (IST) 7 Dec 2022
RBI Guv confident about Rupee’s stability, may not be last rate hike

“The RBI policy stayed very aware of the global slowdown and its spillovers while acknowledging the resilience of the Indian economy. The rate hike was as expected at 35 bps. The RBI reduced the growth forecast in light of geopolitical tensions and doubled down on its commitment to reducing inflation. While many were expecting the 35 bps hike to be the last hike in the cycle, the commentary by the governor does not hint about the same, which is interesting, but as the growth projections have been cut going forward, there will be more scrutiny on rate hikes.  The governor remains confident about the rupee being stable even though he wants the currency to find its own equilibrium price without intervention.”

Sonam Srivastava, Founder, Wright Research

11:03 (IST) 7 Dec 2022
Overall system liquidity remains in surplus

“Overall system liquidity remains in surplus. During October-November, the average total absorption under the liquidity adjustment facility (LAF) was Rs 1.4 lakh crore, down from the average of Rs 2.2 lakh crore during August-September. As part of our gradual move towards normal liquidity operations, we have decided to restore market hours – from 9.00 am to 5.00 pm – in respect of call/notice/term money, commercial paper, certificates of deposit and repo in corporate bond segments of the money market as well as for rupee interest rate derivatives. “-RBI Governor

11:01 (IST) 7 Dec 2022
Food inflation is likely to moderate

“The inflation trajectory has largely evolved in line with the outlook given by us in June 2022. Going forward, food inflation is likely to moderate with the usual winter softening and the likelihood of a bountiful rabi harvest, but pressure points remain in the form of prices of cereals, milk and spices in the near-term. The main risk is that core inflation (CPI excluding food and fuel) remains sticky and elevated. Overall, the CPI price momentum remains high. Risks from adverse weather events add to uncertainty in the outlook.”-RBI Governor

11:00 (IST) 7 Dec 2022
USDINR could move higher

“RBI's monetary policy was on expected lines with 35-bps hike and promise to do more. Their comments on Rupee was also in line with their previous comments. They target volatility and Rupee remains stable on a REER basis. In a way it means, RBI would be watching closely after volatility has increased in USDINR, over the past two trading sessions. But without active intervention or annoucement of sell-buy swap, we could see USDINR move higher. We expect a range of 82.00 and 83.00.”

– Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives, Kotak Securities

10:58 (IST) 7 Dec 2022
India to remain amonf fastest growing major economies in the world

“The biggest risks to the outlook continue to be the headwinds emanating from protracted geopolitical tensions, global slowdown and tightening of global financial conditions. Taking all these factors into consideration, real GDP growth for 2022-23 is projected at 6.8 per cent, with Q3 at 4.4 per cent and Q4 at 4.2 per cent. The risks are evenly balanced. Real GDP growth is projected at 7.1 per cent for Q1:2023-24 and at 5.9 per cent for Q2. Even after this revision in our growth projection for 2022- 23, India will still be among the fastest growing major economies in the world”-RBI Governor

10:57 (IST) 7 Dec 2022
Investment activity to get support from capex

“Going ahead, investment activity will get support from government capex. A pick-up in the share of fixed assets in total assets of manufacturing companies was visible in H11. According to our surveys, consumer confidence has improved further. Manufacturing and infrastructure sector firms are optimistic about the business outlook2. Services sector firms also expect activity to expand. In an interconnected world, we cannot remain entirely decoupled from adverse spillovers from the global slowdown and its negative impact on our net exports and overall economic activity.”-Shaktikanta Das

10:56 (IST) 7 Dec 2022
MPC focused on withdrawal of accommodation

“The MPC was of the view that further calibrated monetary policy action is warranted to keep inflation expectations anchored, break core inflation persistence and contain second round effects. These actions will strengthen the medium-term growth prospects of the Indian economy. Accordingly, the MPC decided to increase the policy repo rate by 35 basis points to 6.25 per cent and to remain focused on withdrawal of accommodation, while supporting growth.”-Shaktikanta Das

10:54 (IST) 7 Dec 2022
Rate hike can have adverse impact on residential property sales

“This rate hike can have an adverse impact on home sales. However, it seems unlikely considering how we are witnessing strong traction, as most buyers are looking for self-use and not investment. Going forward, we expect the demand for projects developed by branded developers to continue witnessing strong demand with pricing power.”

Cyrus Mody, Managing Partner, Viceroy Properties

10:52 (IST) 7 Dec 2022
RBI close to terminal rate, concerns on inflation continue

“The RBI, in line with expectations, hiked repo rate by 35 bps to 6.25%. The stance also remains unchanged at withdrawal of accommodation though the voting against this stance has increased to two members. Overall, the concern on inflation continues especially as core inflation remains sticky and elevated. Growth concerns remain limited, for now. We believe the RBI is now close to the terminal rate with the real policy rate, based on few quarters ahead inflation, around 100 bps positive. The February policy decision will be finely split between a pause and a last 25 bps hike with a bias towards a hike given that near term inflation readings is likely to remain relatively elevated around 5.5%.”

Suvodeep Rakshit, Senior Economist, Kotak Institutional Equities

10:42 (IST) 7 Dec 2022
Expect continued intervention in exchange rates

“RBI, much in line with market expectations, has increased the interest rates by 35 basis points, keeping its stance on “withdrawal of accommodation”, given the continuing global uncertainty with continued impact on food security and energy security. Given the second-order effects of exchange rates on inflation, we expect continued intervention in the exchange rate market by RBI, to keep the exchange rates within a band.”

– Vivek Iyer – Partner and Leader, Financial Services Risk, Grant Thornton Bharat

10:41 (IST) 7 Dec 2022
Rate hikes to continue

“The RBI MPC raised repo rate by 35 basis points to 6.25% with 5-1 vote. The stance remained focused on withdrawal of accommodation. While this was ours as well market consensus, it seems like we may not be fully done with the rate hiking cycle. The inflation guard continues to remain. Key to now track FOMC outcome in the coming week. Expect bond markets to give up some gains and trade range bound as global growth concerns dominate.”

Lakshmi Iyer, CEO – Investment Advisory, Kotak Investment Advisors

10:31 (IST) 7 Dec 2022
Arjuna eye on Inflation: RBI Guv

“Will keep Arjuna's eye on evolving inflation dynamics; RBI remains nimble, flexible in liquidity management,” says RBI Governor

10:26 (IST) 7 Dec 2022
RBI MPC actions to be nimble going forward

Our actions will be nimble for the best interest of the economy 6.8%. FY23 growth estimate indicates a very strong growth impulse against the global backdrop: Shaktikanta Das

10:25 (IST) 7 Dec 2022
FY23 GDP growth forecast cut

FY23 inflation forecast is kept unchanged at 6.7% despite a minor upward revisions to Q3FY23 & Q4FY23 forecasts

10:24 (IST) 7 Dec 2022
Liquidity conditions are set to improve

“Ready to conduct LAF operations to infuse liquidity into the system. Liquidity conditions are set to improve. Weighted average lending rate is up 117 bps in May-October against all major currencies expect a few”- RBI Governor

10:22 (IST) 7 Dec 2022
CPI Inflation target remains unchanged

The RBI MPC has not revised the CPI Inflation target for FY23, remains at 6.7%.

10:15 (IST) 7 Dec 2022
FY23 GDP growth seen at 6.8%

Real GDP growth is pegged at 6.8% in FY23, at 7.1% in Q1FY23 and at 5.3% in Q2FY23.

10:12 (IST) 7 Dec 2022
Inflation proving to be sticky

Core inflation in still exhibiting stickiness. CPI inflation tolerance remains above the RBI's upper limit of 6%. Inflation is expected to remain higher than the target. Das says market expectation and monetary policy decisions aligned in this instance

Further calibrated monetary policy is warranted to anchor inflation expectations, break core inflation persistence, contain 2nd round effects . This will strengthen mid-term growth prospects of Indian economy.

10:07 (IST) 7 Dec 2022
Repo rate hiked by 35 bps

The RBI Monetary Policy Committee has raised repo rate by 35 bps to 6.25%

10:06 (IST) 7 Dec 2022
Indian financial system robust

India's financial system remains robust and stable. India is seen as a bright spot in an otherwise gloomy world. –Shaktikanta Das

10:03 (IST) 7 Dec 2022
Global economy marred by profound shocks

The global economy is still marred by profound shocks, Supply chains are being redrawn on considerations of geopolitical security. Food and energy security, along with climate change, are the biggest challenges to the world.-RBI Governor, Shaktikanta Das

10:02 (IST) 7 Dec 2022
Shaktikanta Das address begins

RBI Governor Shaktikanta Das is announcing outcome of the 3-day monetary policy committee meeting.

09:58 (IST) 7 Dec 2022
RBI may soften pace of rate hike

“RBI is likely to soften the pace of its rate hike in the upcoming MPC meeting as inflation is expected to moderate in the coming months given that global commodity prices and the domestic wholesale prices have softened from the peak witnessed early this year. Also, as seen in the Q2 FY23 GDP print, except for the service sector, a de-growth was seen in most of the core sectors such as industry, manufacturing etc. Hence, with inflation potentially showing signs of ebbing and growth concerns coming to the fore, we expect the RBI to hike its repo rate by a comparatively subdued 30-35bps in the upcoming MPC meeting.”-Shishir Baijal, Chairman and Managing Director, Knight Frank India

09:51 (IST) 7 Dec 2022
RBI MPC commentary recap

RBI Governor and MPC Chair Shakitkanta Das in the last policy had said, while advanced economies' actions are driven by their domestic considerations, emerging markets suffer the consequences due to global spillovers. The rate hike back then was largely guided by the ambition to tame galloping inflation and in line with aggressive policy tightening by key global central banks.

09:50 (IST) 7 Dec 2022
MPC’s inflation, growth outlook to determine market sentiment in near-term

“RBI's statement on the inflation and growth outlook would determine the market sentiment in the near term. Technically, investors should refrain from taking large leveraged positions until Nifty clears its all-time-high at 18888 mark. The line in the sand is at Nifty’s support at 18417. Banking & other rate-sensitive stocks could be volatile during the scope of the meeting. For Bank Nifty, the make-or-break support is at 42200.”-Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities

09:48 (IST) 7 Dec 2022
India Forex reserves drop

Ahead of the monetary policy review in September, India’s foreign exchange reserves had dropped to $545.65 billion, which was then the lowest level since 2 October 2020. The reserves fell further to an over two-year low of $524.52 billion for the week ending 21 October, depleting by $117.93 billion from the record high of $642.45 billion seen on 3 September last year. However, it has now risen for three straight weeks stood at $550.14 billion for the week ending 25 November.

09:38 (IST) 7 Dec 2022
RBI Monetary Policy Committee members

The RBI Monetary policy committee meeting is chaired by RBI governor Shaktikanta Das, Deputy governor Dr Michael Debabrata Patra, Dr Shashanka Bhide, Senior Advisor, National Council of Applied Economic Research, Delhi, Dr Ashima Goyal, Emeritus Professor, Indira Gandhi Institute of Development Research, Mumbai, Prof. Jayanth R. Varma, Professor, Indian Institute of Management, Ahmedabad and Dr Mridul K. Saggar, Executive Director.

09:36 (IST) 7 Dec 2022
RBI’s growth outlook eyed

The central bank's outlook, which will accompany the rates decision, will be an important pointer to future policy moves, according to economists.

09:33 (IST) 7 Dec 2022
Rate hikes so far in 2022

Reserve Bank of India's Monetary Policy Committee has hiked the interest rate in recent times by 190 basis points (bps) since May to contain inflation. The key benchmark lending rate has been hiked by 50 bps thrice by RBI since June. These hikes are over and above the off-cycle 40 bps hike in the repo rate delivered in May. RBI had last hiked the benchmark lending rate by 50 bps in September to take it to the prevailing 5.90% mark.

09:31 (IST) 7 Dec 2022
Rate hike to support rupee

“The RBI has already intervened to support the rupee and further rate rises are likely to support the currency and to curtail underlying inflationary pressure. We now expect the RBI to increase policy rates to 6.15% by December and to then hold this rate throughout 2023,” Fitch said. The RBI's monetary policy committee is widely expected to raise the benchmark interest rates on December 7 from 5.90 per cent currently.”-Fitch Ratings

09:30 (IST) 7 Dec 2022
Assocham request for smaller rate hike

“Industry lobby body Assocham recently had made a request to RBI Governor Shaktikanta Das. At most, the new rate hike should not exceed the 25-35 bps band, Assocham said in a letter to Das. Several economists too have said the repo rate hike will be in the 25-35 bps band.

09:26 (IST) 7 Dec 2022
Terminal repo rate seen at 6.50%

“A 50 bps hike would be too aggressive given that inflation has started showing signs of moderation and is progressing in line with the RBI's projections. The terminal rate in this cycle is expected to be 6.50% and the path to this is likely to be split between two rate hikes — 35 bps in December and then 25 bps in February,” said Sakshi Gupta, Principal India Economist, HDFC to Reuters.

09:25 (IST) 7 Dec 2022
Fed tightening may keep RBI from pausing rate hikes

“The risk that the Fed tightens even more than current pricing of close to 5% is reasonably high and that could keep pressure on emerging market central banks such as the RBI to abstain from signalling the end of rate hikes.”-Abhishek Upadhyay, senior economist at ICICI Securities Primary Dealership

09:22 (IST) 7 Dec 2022
Repo rate hike decision unlikely to be unanimous

“The RBI’s December policy meeting will likely see the MPC hiking repo rate by 35 bps; lower than the last three hikes of 50 bps. However, the decision is unlikely to be unanimous. The domestic inflation trajectory while remaining above the upper limit of the RBI’s inflation target band is gradually moderating. Domestic demand remains steady though risks of a global demand slowdown are increasing which is likely to impinge on India’s growth. The external sector situation remains uncertain. Inflation in most developed economies remains elevated but showing signs of peaking,”-Suvodeep Rakshit, Chief Economist, Kotak Instituitonal Equities

First published on: 07-12-2022 at 08:00 IST