Mumbai: The Reserve Bank of India (RBI), which on Tuesday hiked the repo rate by 0.25%, has indicated that it won’t go for another rate hike in the near future.
RBI Governor D Subbarao said that the inflationary pressures are expected to ease starting December 2011 and is likely to go down to 7% by March 2012 and hence the central bank may not be required to further hike rates to curb inflation.
“Inflation and inflationary expectations remains high and above the comfort levels and will be there for two months,” he added.
The Governor further added that the l ikelihood of a rate high in December is low and a decline in inflation will help in keeping the chances of a rate hike in early 2012 low.
He further added that the impact of past monetary policy is still unfolding and hence the RBI, for now, is persisting with the anti-inflationary monetary stance.
First Published: Tuesday, October 25, 2011, 11:38