Interest Rate Outlook - Mixed Tone Of MPC Minutes Reinforces Our View Of 60 Bps Of Repo Hikes In Q2 FY23: ICRA

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICRA Research Report.The Monetary Policy Committee hiked policy rates by 90 basis points in May-June 2022 following the surge in inflation readings. Amid the mixed tone of the MPC members’ minutes, we continue to expect additional, frontloaded policy rate hikes of 35 bps and 25 bps in the August 2022 and September 2022 policy meetings, respectively, followed by an extended pause to gauge the impact on growth.As a percentage of net demand and time liabilities, net systemic liquidity surplus has eased to a 32-month low of 1.2% as on June 22, 2022 from ~4.4% in early-April 2022. The rapid drop is quite surprising given the Reserve Bank of India’s assurances of a calibrated normalisation in liquidity. Although the gap between the repo rate and the weighted average call rate has narrowed, it remains high, indicating that liquidity conditions are comfortable..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Interest Rate Outlook - Mixed Tone Of MPC Minutes Reinforces Our View Of 60 Bps Of Repo Hikes In Q2 FY23: ICRA

Interest Rate Outlook - Mixed Tone Of MPC Minutes Reinforces Our View Of 60 Bps Of Repo Hikes In Q2 FY23: ICRA

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