With no sign of inflation moderating in the next few months, economists polled by the leading industry body Ficci expect a 0.25 per cent more hike in the policy rates by the Reserve Bank on July 27.
On July 2, the Reserve Bank had hiked both the short-term lending and borrowing rates by 25 basis points each to contain inflation.
"Majority of economists feel that the RBI would continue to move ahead on the path of monetary tightening and anticipate a hike of 25 basis points, each in the repo rate (rate at which RBI lends to banks) and reverse repo rate (rate at which RBI borrows)," Ficci said. The chamber said it had polled 14 "economists of repute".
The present repo and reverse repo rates are 5.50 per cent and 4 per cent, respectively.
The survey suggested that the core inflation would continue to remain around the present level (10.55 per cent) for next few months due to the recent fuel price hike, spatial distribution of monsoon and depreciation of rupee.
The Gross Domestic Product for the first quarter (April-June) is expected to be about 9 per cent, according to Finance Ministry's Chief Economic Adviser Kaushik Basu.
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