Another rate hike on the cards: Morgan Stanley predicts RBI to go for big rate hike in September policy
The inflation which is ranging above the upper tolerance band of the RBI for the eighth straight and therefore Morgan Stanley too expect inflation to remain sticky around 7.1-7.4 per cent in September as well, driven by increases in food prices as per high frequency food price trend.
The RBI has lifted the repo rate by 140 basis points and surplus liquidity has fallen significantly, pushing the weighted average call rate to 5 per cent from 3.5 per cent in April. Pic: Reuters