India Monetary Policy: February 2018
The RBI held the benchmark Repo rate at 6% at its February meeting. This decision was in line with expectations.
Key points:
- The RBI held the benchmark Repo rate at 6% at its February meeting. This decision was in line with expectations.
- They also raised their inflation outlook, and highlighted upside risks to the forecasts.
- In light of the elevated inflation outlook, NAB Economics has changed its interest rate projection.
- In particular, we are forecasting a rate hike in the December quarter 2018, which will raise the Repo rate to 6.25%. Risks to our forecasts are evenly balanced.
For further details, please see the attached document:
About the Author
John Sharma is the Sovereign Risk Economist for the National Australia Bank, and is also entrusted with the coverage of India. John has been in the NAB Economics team since August 1999, and in the Sovereign Risk role since March 2013.
Prior to joining the Sovereign Risk area, John was in the Industry Economics team (with responsibilities for Property, Construction, Hospitality and Transport), followed by a role as the domestic Macro Economist, with responsibility for macroeconomic analysis and forecasting of the Australian Economy as well as in preparing the NAB Monthly, Quarterly and SME Business Surveys.
John has a first class Honours in Economics from Melbourne University and is a CFA Charterholder.
