We got a slew of macro data overnight – goods and services tax (GST) collections which didn’t impress most of the economists, the Indian Monetary Policy Committee Members also expressed discomfort over the rising inflation and the US yield has hit a 4-year high post the release of hawkish Federal Open Market Committee (FOMC) minutes.
We got a slew of macro data overnight – goods and services tax (GST) collections which didn’t impress most of the economists, the Indian Monetary Policy Committee Members also expressed discomfort over the rising inflation and the US yield has hit a 4-year high post the release of hawkish Federal Open Market Committee (FOMC) minutes.
In an interview to CNBC-TV18, Tanvee Gupta Jain of UBS and Abhishek Upadhyay of ICICI Securities Primary Dealership shared their views and readings on the data.
Upadhyay said that Reserve Bank of India (RBI) minutes were hawkish; expect rate hike by August.
He further said that we see a clear message in RBI's MPC minutes that there is a need to nurture growth.
Tanvee Gupta Jain of UBS said that our view is that the rates should be on hold in FY19.
We expect rate hike from RBI in second half of FY19, she added.
According to her, risk of populist spending ahead of elections could prompt rate hike.
For more, watch accompanying video.
