RBI may revise CRR, repo rates in OctoberRBI may revise CRR, repo rates in October 2007 says credit suisse group report on asia ex-japan. The revision is expected if financial market conditions remain relatively stable
Apnaloan.com Research Bureau
05 Sep 2007
The Reserve Bank of India (RBI) may raise the
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rates in the credit policy review meetings in
October 2007 and January 2008.
The revision may take place according to the Credit Suisse Group's report on Asia Ex-Japan inflation, which expects the inflation in India to accelerate till December 2007 and then calm down in the period from January to March 2008.
The report also says that RBI may hike the repo rate by 25 basis points at the credit policy review meetings in October 2007 and January 2008 to bring the repo rate to 8.25 per cent.
The report also foresees a hike in the cash reserve ratio (CRR) by 50 basis points to 7.5 per cent by end-2007. The statistics are based on the assumption that global financial markets jitters recede in the coming months.