Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
Associate PartnerAssociate Partner
..
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

RBI May Hike Rates Again in August on Rise in Inflation: Analysts

Official data released yesterday said retail inflation jumped to a four-month high of 4.87 per cent in May on costlier food items such as fruits, vegetables and cereals, coupled with high fuel rates.

PTI

Updated:June 13, 2018, 5:03 PM IST
facebookTwitterskypewhatsapp
RBI May Hike Rates Again in August on Rise in Inflation: Analysts
File photo of RBI headquarters in Mumbai. (Reuters)

Mumbai: Headline inflation surging to a four-month high of 4.87 per cent in May is likely to force the Reserve Bank of India (RBI) to hike rates once again at its August monetary policy review, analysts said.

The commentary comes a day after industry body Confederation of Indian Industry (CII) said that monetary policy tightening will increase the cost of doing business and force India Inc to slowdown on investments, which are critical for pushing the growth agenda.

"With both core and headline inflation only likely to face greater upside pressure from various factors in the

coming months, we continue to expect one more 0.25 per cent rate hike from the RBI. This could occur as soon as the July

31-August 1 meeting," analysts at the French brokerage BNP Paribas said in a note.

UBS Securities said a hike is "likely in August". "If global crude prices remain at current levels and core inflation remains elevated, the next rate hike could be announced sooner (likely in August) than later," it said, adding that the announcement of minimum support prices for agri produce will be watched keenly.

Analysts at German brokerage Deutsche Bank also said they expect a 0.25 per cent rate hike by the RBI at the August review, saying an inflation targeting central bank will feel the need to tighten the policy based on these "signals" from inflation.

However, Bank of America Merill Lynch said base effects is driving up the inflation number and added that the RBI will be on "long hold".

Official data released yesterday said retail inflation jumped to a four-month high of 4.87 per cent in May on costlier food items such as fruits, vegetables and cereals, coupled with high fuel rates.

In May last year, the retail inflation was at a low of 2.18 per cent.

At its policy review last week, the apex bank had upped its retail inflation projection by 0.30 per cent and kept the policy stance in the neutral zone, even as it hiked the key rates by 0.25 per cent.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Infosys 650.60 1.10
Yes Bank 51.20 -1.16
RBL Bank 259.15 -9.69
Reliance 1,392.40 -1.54
Axis Bank 714.85 0.29
Company Price Change %Gain
Infosys 650.75 1.16
Yes Bank 51.25 -1.06
IRCTC 900.40 6.52
RBL Bank 259.25 -9.64
Indiabulls Hsg 206.20 -5.50
Top Gainers
Company Price Change %Gain
HCL Tech 1,095.15 2.88
Eicher Motors 20,521.20 2.71
Maruti Suzuki 7,440.25 2.54
SBI 275.45 1.83
Titan Company 1,348.65 1.44
Company Price Change %Gain
HCL Tech 1,095.65 2.93
Maruti Suzuki 7,439.50 2.55
SBI 275.50 1.87
HDFC 2,144.50 1.35
Bajaj Auto 3,161.35 1.22
Top Losers
Company Price Change %Gain
Adani Ports 396.10 -5.86
Bharti Airtel 360.35 -3.68
Zee Entertain 242.10 -3.33
Vedanta 146.25 -1.94
Grasim 743.15 -1.71
Company Price Change %Gain
Bharti Airtel 360.75 -3.59
Vedanta 146.10 -1.95
ONGC 141.95 -1.53
Reliance 1,392.85 -1.51
Kotak Mahindra 1,607.50 -1.31

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results