{"id":4255,"date":"2022-05-23T17:41:00","date_gmt":"2022-05-23T12:11:00","guid":{"rendered":"http:\/\/13.235.158.174\/hfc\/?p=4255"},"modified":"2024-05-08T17:42:56","modified_gmt":"2024-05-08T12:12:56","slug":"rbi-to-front-load-rate-hikes-to-tame-inflationary-pressures-large-fx-reserves-provide-a-cushion-against-external-shocks","status":"publish","type":"post","link":"http:\/\/43.204.86.36\/hi\/rbi-to-front-load-rate-hikes-to-tame-inflationary-pressures-large-fx-reserves-provide-a-cushion-against-external-shocks\/","title":{"rendered":"RBI to front-load rate hikes to tame inflationary pressures; large FX reserves provide a cushion against external shocks"},"content":{"rendered":"<p>The global economic outlook remained clouded by spillovers from the Ukraine-Russia war, supply-side disruptions, elevated commodity prices, and synchronized monetary tightening by major central banks. Spillover from these global developments will weigh on India&#8217;s ongoing economic recovery. Consequently, we revise the FY23 real GDP growth projection downward from 7.7% YoY to 7% YoY. The RBI&#8217;s large FX buffer provides a cushion against external vulnerability risks. Further, with the inflationary outlook deteriorating, the RBI embarked on a rate hike cycle in an off-cycle meeting in May, raising the repo rate by 40 bps. In line with our expectation of front loading of rate hikes, we expect the RBI to raise the repo rate by an additional 110 bps in FY23.<\/p>","protected":false},"excerpt":{"rendered":"<p>The global economic outlook remained clouded by spillovers from the Ukraine-Russia war, supply-side disruptions, elevated commodity prices, and synchronized monetary tightening by major central banks. Spillover from these global developments will weigh on India&#8217;s ongoing economic recovery. Consequently, we revise the FY23 real GDP growth projection downward from 7.7% YoY to 7% YoY. The RBI&#8217;s [&hellip;]<\/p>","protected":false},"author":1,"featured_media":3973,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,6],"tags":[],"class_list":["post-4255","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-macro-economic-monitor","category-research-reports","macro-economic-monitor","research-reports"],"acf":[],"_links":{"self":[{"href":"http:\/\/43.204.86.36\/hi\/wp-json\/wp\/v2\/posts\/4255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/43.204.86.36\/hi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/43.204.86.36\/hi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/43.204.86.36\/hi\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/43.204.86.36\/hi\/wp-json\/wp\/v2\/comments?post=4255"}],"version-history":[{"count":3,"href":"http:\/\/43.204.86.36\/hi\/wp-json\/wp\/v2\/posts\/4255\/revisions"}],"predecessor-version":[{"id":4261,"href":"http:\/\/43.204.86.36\/hi\/wp-json\/wp\/v2\/posts\/4255\/revisions\/4261"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/43.204.86.36\/hi\/wp-json\/wp\/v2\/media\/3973"}],"wp:attachment":[{"href":"http:\/\/43.204.86.36\/hi\/wp-json\/wp\/v2\/media?parent=4255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/43.204.86.36\/hi\/wp-json\/wp\/v2\/categories?post=4255"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/43.204.86.36\/hi\/wp-json\/wp\/v2\/tags?post=4255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}