What will happen to family budgets, savings & investment choices, India Inc’s investment plans and job creation as prices soar and RBI tightens policy screws? To get some answers, TOI invited Nilesh Shah, MD, Kotak Mahindra Asset Management, and DK Joshi, Chief Economist, Crisil, to a conversation. Their main conclusion: While more rate hikes are inevitable, India may be better placed than it was in earlier periods of high inflation.
What’s your assessment of the interest rate trajectory?
DK Joshi (DKJ): Our assessment is that about a further 75-200 basis points increase in repo rate may be needed and that would have to be done quickly, front-loaded, so to say. Not at one go I think in two-three steps and front-loaded means they have to do it in the first part of the fiscal year.
What’s your assessment of the interest rate trajectory?
DK Joshi (DKJ): Our assessment is that about a further 75-200 basis points increase in repo rate may be needed and that would have to be done quickly, front-loaded, so to say. Not at one go I think in two-three steps and front-loaded means they have to do it in the first part of the fiscal year.