Brokerages remain hawkish on the interest rate trajectory with analysts forecasting the Reserve Bank of India (RBI) will front-load hikes — inspite of the expected moderation in prices following the fuel duty cuts last week.
With inflation at an elevated level, analysts at the present are more concerned on the extent of rate hikes. A section believes the monetary policy committee (MPC) of the RBI will not be too aggressive in raising the policy rate beyond 5.15 per cent, given growth concerns.
On Monday, the economists at Kotak Mahindra Bank said inflation has remained sticky and high and is spiralling into a vicious cycle, eroding purchasing power.
