RBI Likely To Hike Rates From First Quarter Of 2022: Report
NDTV
Reserve Bank of India may change its monetary policy stance and increase lending rates from the first quarter of 2022, said brokerage firm Nomura
Reserve Bank of India (RBI) may change its monetary policy stance and increase lending rates from the first quarter of 2022, Japanese brokerage firm Nomura said on Monday.
The apex bank will begin moving towards normal liquidity flow from this month, it said, adding that this will narrow down the gap between the rate at which it funds the system and the rate at which it absorbs excess cash flow, in December.
A section of experts have seen RBI's move to narrow down excess liquidity through stated targets as a first step towards normalising its policy stance, which has been quite accommodative since last year, to soak in the pressures created due to the onset of the Coronavirus pandemic, the report by the brokerage firm noted.
Nomura hiked its consumer price index inflation target for 2022 to 5.2 per cent from 5 per cent earlier.
