US Fed rate hike will not impact RBI policy
Posted on: 17/Mar/2017 12:29:25 PM
The hike in US Fed rate is not surprising at all. This will also not have any impact on RBI policy next month as the global development is already taken under consideration.
The hike in US Fed is as expected. And the benchmark interest rates are raised for the second time in the past three months. Two additional hikes are also expected in 2017.
Considering the RBI, there will be no cut in interest rate. The rate cut cycle is over, said Crisil Chief Economist D.K Joshi. In the forthcoming monetary policy, the RBI is likely to stay put on repo rate and this will be due to the increase in inflation including wholesale and retail.
The monetary policy review is scheduled for 5-6 April. In February, the wholesale inflation spurted to a 39-month high and reached up to 6.55 percent. The retail inflation reached 3.65 percent because of higher food and fuel prices.
