Mumbai: India’s benchmark 10 years bond yield Global crude oil prices touched a three-week high in early trade on Tuesday, raising concerns over the need for the central bank to aggressively tighten monetary policy to control inflation.
Benchmark Bond Yield It was trading at 7.46% as of 0606 GMT, its highest level since May 9.
Oil prices rose after the EU agreed to reduce oil imports from Russia, adding to already tense market concerns for supply amid rising demand ahead of the US and European summer driving season. Is.
A senior trader at a foreign bank said, “Crude oil remains above $120 a barrel. This is likely to maintain an upward pressure on domestic inflation, so there is no need to expect a moderation in inflation.”
India imports about 85% of its oil needs and higher crude oil imports lead to inflation. merchants will be looking GDP data Payable at 1200 GMT for near term signals.
Asia’s third-largest economy probably grew 4.0% in the January-March quarter from a year earlier, a Reuters poll showed last week. This will be the slowest pace in a year, after a 5.4% increase in the previous quarter.
The latest Reuters poll showed more than a quarter of economists, 14 out of 53, expect the RBI to rise 35 basis points to 4.75% in June, compared to 20 expected after the first 40 basis points rate hike in May. A big step up from 40-75 basis points, including 10 that anticipate 50-basis-point growth.
The Monetary Policy Committee is scheduled to announce its next policy decision on June 8.
The primary focus of the RBI is to bring inflation closer to the target, but it cannot ignore the concerns around growth, Governor Shaktikanta Das told the Economic Times newspaper in an interview last week.
A senior dealer at a private bank said, “Next week MPC will now be the key trigger. Based on today’s GDP data, we need to see if they sustain a potential 50 bps growth or to protect growth. Let’s do something small.” ,
Benchmark Bond Yield It was trading at 7.46% as of 0606 GMT, its highest level since May 9.
Oil prices rose after the EU agreed to reduce oil imports from Russia, adding to already tense market concerns for supply amid rising demand ahead of the US and European summer driving season. Is.
A senior trader at a foreign bank said, “Crude oil remains above $120 a barrel. This is likely to maintain an upward pressure on domestic inflation, so there is no need to expect a moderation in inflation.”
India imports about 85% of its oil needs and higher crude oil imports lead to inflation. merchants will be looking GDP data Payable at 1200 GMT for near term signals.
Asia’s third-largest economy probably grew 4.0% in the January-March quarter from a year earlier, a Reuters poll showed last week. This will be the slowest pace in a year, after a 5.4% increase in the previous quarter.
The latest Reuters poll showed more than a quarter of economists, 14 out of 53, expect the RBI to rise 35 basis points to 4.75% in June, compared to 20 expected after the first 40 basis points rate hike in May. A big step up from 40-75 basis points, including 10 that anticipate 50-basis-point growth.
The Monetary Policy Committee is scheduled to announce its next policy decision on June 8.
The primary focus of the RBI is to bring inflation closer to the target, but it cannot ignore the concerns around growth, Governor Shaktikanta Das told the Economic Times newspaper in an interview last week.
A senior dealer at a private bank said, “Next week MPC will now be the key trigger. Based on today’s GDP data, we need to see if they sustain a potential 50 bps growth or to protect growth. Let’s do something small.” ,