World Connect News
RBI Rate Hikes: Repo rate hike likely in October and December?
The buzz in the financial markets has intensified regarding the upcoming Monetary Policy Committee (MPC) meetings of the Reserve Bank of India (RBI). Given the global uncertainties and the trend of inflation in the country, the question is being raised whether the central bank will increase the rates in October and December? HSBC, a leading global institution in the financial services sector, has estimated in its latest report that RBI may maintain the repo rate at the level of 5.75% during the current financial year. HSBC analysts believe that due to macroeconomic stability and controlled inflation in the Indian economy, the need for an immediate rate hike seems less.
HSBC’s stance and its impact on your pocket
According to HSBC, if the RBI keeps the repo rate stable at 5.75%, it will avert the risk of a sudden increase in interest rates on home loans, car loans, and personal loans. The Reserve Bank of India’s priority is to accelerate growth while keeping inflation within its target range. Market experts believe that in the October and December meetings, the RBI’s focus will be on liquidity management and the stance of global central banks, especially the US Federal Reserve. This policy stability is expected to provide long-term relief to the Indian stock market and banking sector.
