The Monetary Policy Committee (MPC) is expected to maintain the repo rate at 6% in the ensuing policy review meeting next week, however, there is also a probability of a pre-emptive hike by 25 bps, says a UBS report.<\/p>\n
According to the global financial services major, the June policy review meeting is likely to be a close call, while the tone of the policy statement is expected to remain hawkish.<\/p>\n
\u201cIn its monetary policy review, scheduled for 4-6 June, we expect the MPC to maintain the repo rate at 6%. However, we assign a 40% probability that the MPC will pre-emptively hike rates by 25 bps in the meeting,\u201d Tanvee Gupta Jain, economist, UBS Investment Bank said in a research note.<\/p>\n
In its first bi-monthly monetary policy for 2018-19, RBI left repo rate unchanged at 6%. The MPC maintained status quo for the fourth consecutive time since August last year.<\/p>\n
The minutes of the April meeting had suggested that two of the six MPC members have already decided to vote in favour of a 25 bps hike.<\/p>\n
According to the global brokerage house, the MPC will hike rates by 50 bps this fiscal from its August meeting. However, if oil price touch USD 100\/bbl or the rupee depreciates to Rs 70\/USD, the rate hike cycle might start sooner and would be more aggressive (at least 75 bps from now).<\/p>\n
The report said MPC will keep a close watch on evolving inflation dynamics and will monitor announcements of hikes in minimum support prices for the kharif crops and changes in procurement policy, global oil prices, the out-turn of monsoon, risk of fiscal slippages in the run-up to the 2019 general elections among others.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Monetary Policy Committee (MPC) is expected to maintain the repo rate at 6% in the ensuing policy review meeting next week, however, there is also a probability of a pre-emptive hike by 25 bps, says a UBS report. According to the global financial services major, the June policy review meeting is likely to be […]<\/p>\n","protected":false},"author":1,"featured_media":32541,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-32540","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\/32540","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=32540"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/32540\/revisions"}],"predecessor-version":[{"id":32542,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/32540\/revisions\/32542"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/32541"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=32540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=32540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=32540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}