Despite imminent slowdown, rate hikes to continue

Corporate Laws

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Dec 06, 2022 

While the fiscal second quarter growth may be just half of what it was in the first quarter, the central bank may not still put a brake on raising interest rates as price pressures continue.

Economists have factored a lower growth for the September quarter at 6.5 percent compared to 13.5 percent in the June quarter. Despite risks of a further slowdown, the Reserve Bank is still expected to deliver a 35 to 50 basis points ( one bps is 0.01 percent) rate hike to manage inflation within the mandated band of 2-6 percent.

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