Broker call▼ Bearish for Indian equities
RBI To Hike Repo Rate In October, External Environment 'Unforgiving' For India: HSBC's Pranjul Bhandari
The brief
- HSBC’s Pranjul Bhandari said RBI should hike rates in October, not wait until December
- She urged the RBI to pair a rate hike with measures to absorb surplus liquidity
- A rate hike could pressure Indian borrowers while supporting banks’ lending yields
Expectations for an RBI rate hike
Business Standard and SBI economists expected the RBI to raise the repo rate by 25 basis points, from 5.25% to 5.50%, citing inflation risks including elevated crude prices. The MPC began its three-day meeting on October 4, with polls also pointing to further tightening by FY27.
Monday, 5 October
- RBI To Hike Repo Rate In October, External Environment 'Unforgiving' For India: HSBC's Pranjul Bhandari