New Delhi 30th September 2022. “The sharp dichotomy between growth – inflation sentiment is getting trickier globally. Reserve Bank of India is challenged to strike an equilibrium between spurring progressive GDP growth and docile inflation pressure out of tolerance limit. The persistent hike in the repo rates from past few subsequent quarters was along the line of market expectations amidst geo-political humdrum.
Any further repo rate hike will lead to an enhanced inflationary situation with a counter -impact on the growth rate as well as consumption sentiment. Markets are now succumbing to the rising interest rate curve with the undesired ramifications on the currency trade, consumer spending, and investment cycle. It is now imperative to preempt fiscal intervention by the Government to stabilize the catastrophic inflation”
Any further hike in interest rate compounded with commodity inflation will act as a market dampener. The postpone consumption will hurt the housing market which is currently on the upward growth curve”
