Even as the bond market is going through some turmoil, the Reserve Bank would still continue with its rate-hiking cycle, say economists.
At least a 25 basis points hike can be expected on the October 5 policy, economists said. There could also be a change in stance this time. The consumer price index-based inflation for August was at 3.69 per cent, lower than the RBI’s target of 4 per cent. On Wednesday, the rupee closed at 72.62 a dollar and the 10-year bond yields crossed 8 per cent-mark.
“The larger unattended question is on using monetary policy as a pincer