Goldman Sachs: RBI to hold in June, raise rates in 2018
Recent downside surprises in India make the June meeting particularly important
Goldman Sachs says Reserve Bank of India will stay on hold at June 6-7 meeting but hike three times in 2018 as economic activity picks up:
“The next RBI meeting will be held on June 6-7. This meeting is particularly important as markets await the RBI’s reaction to recent downside surprises in inflation to calibrate expectations on future policy path.
“We recently modeled the RBI’s reaction function over the past decade and analyzed what it meant for policy action going forward. We concluded that the RBI will likely stay on hold this year but hike rates three times in 2018, beginning in Q3.”