RBI Governor Malhotra meets FM Sitharaman after 7.8% Q1 growth
RBI Governor Sanjay Malhotra and Finance Minister Nirmala Sitharaman just had a key meeting, weeks after India posted a strong 7.8% GDP growth for Q1, even with global uncertainty in the air.
Their chat comes ahead of the big Monetary Policy Committee meeting set for October 5-7, where more economic moves could be on the table.
SBI recommends 2 25bp rate hikes
With crude oil prices shooting past $100 per barrel (and possibly heading to $123), inflation worries are growing.
SBI now expects that if oil prices remain at high levels, inflation prints for October and November should move toward 6.5% or higher.
Because of this, SBI is recommending that the Reserve Bank should raise the benchmark interest rate by 25 basis points next month and again in December to help keep things steady, making it clear this advice isn't about following what the US Fed does, but about tackling India's own challenges right now.