Mumbai, September 08: The Reserve Bank of India (RBI) is expected to hike repo rate by 25 bps in the next credit policy, a top Market Strategist of JP Morgan said here.
“Currently the RBI is being very considerate in its response to monetary policy, in its response to the high level of cost-push inflation. We do expect the repo rate to go up by 25 basis points (bps) at the next meeting but that is a very modest increase, relative to India’s nominal gross domestic product (GDP) growth,” JP Morgan’s Chief Asian and Emerging Market Strategist Adrian Mowat told reporters here.
Mowat said that the Indian economy should see robust growth and given this, its premium valuations are justified.
“India offers a good growth story. We need to put India’s valuations into a global context.
–Agencies