RBI unlikely to hike rates now despite crude inflation as it is supply-driven shock, not demand: Natixis Economist
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The banking sector has recently seen declines due to inflation fears and potential rate hikes. This news offers a counter-narrative, suggesting a more stable interest rate environment.
Trading Insight
Key Evidence
- •RBI is unlikely to immediately raise interest rates despite inflationary pressures from rising crude oil prices.
- •The current inflation is a supply-side shock, not demand-driven.
- •This view is held by Trinh Nguyen, Senior economist, Emerging Asia at Natixis.
- •Risk flag: Actual RBI policy decision could differ from economist's prediction.
- •Risk flag: Crude oil prices could escalate further, forcing RBI's hand.
Affected Stocks
Lower interest rates generally benefit banks by reducing funding costs and supporting credit growth, though NIMs could be pressured if deposit rates don't fall commensurately.
Lower interest rates generally benefit banks by reducing funding costs and supporting credit growth, though NIMs could be pressured if deposit rates don't fall commensurately.
Lower interest rates generally benefit banks by reducing funding costs and supporting credit growth, though NIMs could be pressured if deposit rates don't fall commensurately.
Lower interest rates generally benefit banks by reducing funding costs and supporting credit growth, though NIMs could be pressured if deposit rates don't fall commensurately.
Lower interest rates generally benefit banks by reducing funding costs and supporting credit growth, though NIMs could be pressured if deposit rates don't fall commensurately.
Lower interest rates generally benefit banks by reducing funding costs and supporting credit growth, though NIMs could be pressured if deposit rates don't fall commensurately.
People in this Story
Senior economist, Emerging Asia at Natixis
Provided expert opinion on RBI's likely monetary policy stance regarding interest rates.
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