InvestorQ : Is it possible that the RBI will hike rates this year in 2020?
vaishnavi mhatre made post

Is it possible that the RBI will hike rates this year in 2020?

Answer
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diksha shah answered.
8 months ago


You cannot rule that out. Normally, RBI hikes rates when the inflation is persistently high. Also, the RBI needs to maintain attractive real rates of interest (interest – inflation) to keep foreign investors interested. Hence 25 bps rate hike this year cannot be fully ruled out.


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Anjana Aiyar answered.
8 months ago


It will be a challenge to meet the fiscal deficit target of 3.5% for FY2020-21, thus, market experts expect an inflationary impact in the RBI rates.