New Delhi, 13/5: With headline inflation accelerating to an eight-year high of 7.79 per cent in April, ratings agency Crisil said price rise is getting broad-based, and the Reserve Bank is likely to respond with rate hikes of up to 1 percentage point in FY23.
The research wing of the entity said it now expects the average consumer price inflation for FY23 to come at 6.3 per cent — above the RBI’s tolerance of 6 per cent — as against 5.5 per cent recorded in FY22.
The RBI hiked its key rate by 0.40 per cent in a surprise move last week while keeping an accommodative stance. Analysts said the move had to be undertaken fearing a sharp spike in the April data.
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