RBI may Go for 3 Rate Hikes from Dec Quarter: Report
The RBI is expected to begin its rate hike cycle from December quarter, and may go for three rate hikes by 2019 taking the key policy rate to 6.75%, says a Morgan Stanley report. It said a significant overshoot of inflation relative to RBI’s target is not likely.
Moreover, the economic recovery will be on a surer footing by the fourth quarter of 2018 and this might prompt RBI to go for a rate hike.
With end demand holding up well, private capex appears poised for a recovery later this year.