IGI Logo

Below is Perspective on RBI`s MPC announcement by Mr. Nish Bhatt, Founder & CEO, Millwood Kane International 

“ The 50 bps hike by the RBI was very much on expected lines. Central banks across EMs and DMs are hiking rates to control the sticky inflation. The easy monetary policy has led to inflation rising to levels never seen in the past few decades. It is pertinent to keep the policy stance at the withdrawal of accommodation as we need further tightening of policy to control inflation.

Despite the cumulative 190 bps hike since May this year, it is encouraging to see the central bank estimating the growth rate at 7% for FY23. Going forward we expect a few more rate hikes by the RBI before a long pause on rates. India will be among the high-growth economies with the least depreciated policy against the USD. However, a spike in crude prices and geo-political tensions may play spoilsport.”

Above views are of the author and not of the website kindly read disclaimer