He is likely to continue to pitch for a neutral policy while Michael Patra, a known hawk, will surely root for a quarter percentage point rate hike. An alternative scenario is Patra and either Acharya or Ghate opting for a rate hike and Patel too joining them. Second, RBI going for a rate hike and stating that the next action will be data-driven. Third, RBI going for a rate hike and, at the same time, adopting a hawkish stance, indicating more rate hikes to come. Along with a rate hike, RBI’s stance on liquidity will determine the market rates.

Source: Mint June 04, 2018 04:07 UTC