Global rate hike cycle begins as oil shock raises risk of 75-100 bps RBI tightening: Report
New Delhi, Sept. 21 -- The global monetary policy regime is entering a tighter phase, with major central banks shifting away from the ultra-loose conditions of the past decade, while India could face 75-100 basis points of cumulative rate hikes if elevated crude prices persist, brokerage firm Motilal Oswal Financial Services said in a research report.
The brokerage said an October rate hike by the Reserve Bank of India (RBI) is a meaningful possibility if crude remains elevated and inflation expectations begin to rise. It retained its forecast of a 7.0-7.2 per cent range for the 10-year Indian government bond yield through the remainder of FY27, while projecting FY27 CPI inflation at 5.1 per cent, slightly above the RBI's 5 per cent proj...
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