New Delhi,<\/p>\n
The Reserve Bank is expected to go for a hike in key policy rates by the fourth quarter of this year, as the country\u2019s economic recovery is likely to be on a \u201csurer footing\u201d by then, says a Morgan Stanley report.<\/p>\n
The global financial services major, expects the start of a shallow rate hike cycle by the fourth quarter of 2018.<\/p>\n
\u201cThe key argument for the case for a rate hike by 4Q18 is two-fold, in that we don\u2019t expect a significant overshoot of inflation relative to the RBI\u2019s target and that the economic recovery will be on a surer footing by then,\u201d Morgan Stanley said in a research note.<\/p>\n
The global brokerage, expects private capex to show signs of recovery by the end of this year.<\/p>\n
\u201cAgainst this backdrop of greater certainty and a more sustained recovery in growth, the central bank can then move to commence a shallow rate hike cycle,\u201d it said.<\/p>\n
In the first bi-monthly monetary policy for 2018-19, the central bank left the repo rate unchanged at 6 per cent. The MPC maintained status quo for the fourth consecutive time since August last year.<\/p>\n
Five members of the panel, including the RBI Governor, voted for a status quo while executive director Michael Patra was the lone member who wanted the key rate to be hiked by 25 basis points.<\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
New Delhi, The Reserve Bank is expected to go for a hike in key policy rates by the fourth quarter of this year, as the country\u2019s economic recovery is likely to be on a \u201csurer footing\u201d by then, says a Morgan Stanley report. The global financial services major, expects the start of a shallow rate […]<\/p>\n","protected":false},"author":1,"featured_media":27426,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-27425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/27425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=27425"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/27425\/revisions"}],"predecessor-version":[{"id":27427,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/27425\/revisions\/27427"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/27426"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=27425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=27425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=27425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}