The Central Bank of India is expected to maintain interest rates on Wednesday de
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According to Reuters survey, India's central bank will keep interest rates unchanged until at least 2019, though inflation is higher than the medium-term target, and it is expected to maintain this situation.
Most analysts expect the keynote to be hawkish when the Central Bank of India announced the latest policy decision on Wednesday.
Although the India consumer price index hit a 17 month high in December, and it will continue to be higher than the India central bank's 4% target in the next 12 months, but in the current fiscal year ending March 31st, India's economy will probably slow down, which will complicate the policy path of India's central bank.
In the survey of 60 analysts, 58 said that on Wednesday's meeting, India central bank would maintain the repurchase interest rate unchanged at 6%, and the selling interest rate remained unchanged at 5.75%, while the other two analysts expected to raise interest rates.
"Inflation is on the rise, and the government has gone out of the path of fiscal consolidation that had been outlined earlier. It is clear that the pressure of the Central Bank of India to raise interest rates is increasing. However, we expect to maintain the status quo in the short term. " Tushar Arora, a senior analyst at HDFC Bank, says.
We believe that the Bank of India may see the upside risk can last long."
In the survey forecast covers until the end of June 2019 in the India area, the central bank is expected to maintain interest rates unchanged, and the previous investigation.
However, the records of the India central bank's December policy meeting show that policymakers are increasingly worried about inflation.
In the survey, 29 of the 46 analysts who answered the extra question on the central bank's Wednesday tone, that is, are more than 60%, and the central bank will be more hawkish. The 15 expected central banks will maintain a neutral tendency, and the two expected tone is more moderate.
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