RBI Monetary Policy: Expect rates to remain stable for next six to eight months, say experts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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This is going to be a Reserve Bank of India (RBI) policy that may be long remembered for its unexpected dovishness. The RBI didn’t give any rate cut, but it practically gave a promise that it may not have to hike rates for the next one year at least if not even longer.

PK Gupta, MD of SBI, A Prasanna, Chief Economist at ICICI Securities Primary Dealership, Manish Wadhwan of HSBC India, and Jayesh Mehta of Bank of America expressed their views on the policy.

Wadhwan said it has been more than expected a dovish policy from RBI. Wadhwan further added that the bond markets have recouped all the losses from December 31.

Mehta described this as a dovish policy, but he believes that till now the market expectation on inflation expectation versus RBI was on much of divergence.

PK Gupta of SBI said that he did not expect yields to rise the way they did.

A Prasanna said  he does not expect a pause in rate hike by RBI for the next 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow