The Reserve Bank is likely to go for more rate hikes like the one 📖on Wednesday on risks 🔯from factors like the minimum support prices for farm produce and firm global commodity prices, HDFC Bank said on Wednesday.
"This is not likely to be end of the hike cycle as dome♏stic price risks such as MSP hikes and firm global commodity prices would warrant further monetary action," the bank said in a post on microblogging site Twitter.
It termed the unanimous rate hike by the six-member monetary policy committee (MPC) as♊ "seജnsible and cautious" given the events of the last two weeks.
The bank, however, said that the boost in ﷺliquidity through changes in liquidity coverage ratio will be offsetting the repo rate hike.
In the first such action in more than four years, the MPC resolved to hike the repo rate by 0.ꦛ25 per cent to 6.25 per c🎃ent, citing risks to inflation, for which the RBI estimate was 🉐upped by up to 0.30 per cent during the fiscal.
Governor Urjit Patel later explained that th▨e growth momentum is also pic꧂king up in the economy and the MPC decided to focus on its core objective of inflation targeting.
He said the RBI will be 🐈cautio🔜us way forward and will look at data on both inflation and growth.
The rate hike is set to come as a dampener to borrowers as banks have already been raising 🐓rates in the past f🀅ew weeks.
(PTI)
