Food inflation, which accounts for nearly half of the overall consumer price basket, is expected to have moderated due to falling vegetable prices, offset in part by surging cereal prices
Full impact of RBI's rate hikes will be next fiscal, says agency while citing three reasons for economy slowing
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Consumer inflation accelerated to five-month high in September. As retail inflation stayed above the upper limit of 2-6% band for the third straight quarter, we ask what the RBI can do to calm prices
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The benchmark 10-year government bond yield ended at 7.2811%. The yield has risen 9 basis points in last three sessions and had ended at 7.2702% on Monday.
The consumer basket in India has been adversely affected due to the high food inflation and weak macro environment. However, easing commodity prices is expected to ease margin woes of FMCG companies
India's worst period of macro instability is possibly over, and both consumer inflation and trade deficit are expected to moderate albeit gradually, Morgan Stanley said
According to MPC's own projections, the inflation rate may not come down below 6% on average before the fourth quarter of the current financial year
Given the tone of urgency in RBI's statement to support the altered inflation-growth dynamics, "we now revise our call and expect the RBI to hike repo rate by an additional 60 bps in the rest of FY23"
The RBI will likely raise the repo rate by at least 50-75 basis points through FY23, and by another 50 basis points in FY24, the ratings agency said
While it termed current inflation as transitory, MPC also expects it to edge up to near-6% levels towards 2021-22 end, highlighting stickiness of inflation in uneven economic recovery
After a year of high inflation-low growth, a sharp dip in food inflation tames the headline number
High consumer inflation likely till September
Among macroeconomic data announcements, retail and WPI inflation numbers will be released on Monday and Tuesday, respectively
It will also maintain liquidity so that govt borrowing doesn't push yields up
RBI is also watching out for inflationary impact of GST, even though food products were exempted