RBI rate hike cycle by Q4, 2018? Know here what this report says
The global financial services major, expects the start of a shallow rate hike cycle by the fourth quarter of 2018. "The key argument for the case for a rate hike by 4Q18 is two-fold, in that we don't expect a significant overshoot of inflation relative to the RBI's target and that the economic recovery will be on a surer footing by then," Morgan Stanley said in a research note
According to a Deutsche Bank Research, given the current and near-term growth-inflation mix, the RBI is likely to remain on an extended pause provided there is normal monsoon and global oil prices remain below USD 70/barrel.Image source: Reuters