In an interview to CNBC-TV18, Amitabh Chaudhry, MD & CEO of Axis Bank said the print on the inflation has been a bit scary.
“Macros look volatile. You have very clear situation where the G10 central bankers are saying they will have aggressive and pro-active rate hikes. They will also withdraw liquidity from the system in a significant manner and with the commodity price shocks that we are seeing in the market place, you are seeing importation of inflation into India. The print on the inflation has been a bit scary which prompted RBI to act proactively and they might continue to act going forward.”
He expects interest rates to return to pre-COVID levels by August.
The market is expecting some hiked in July and August both and get it to maybe the pre-COVID levels and from thereon I guess the data will determine as to whether further hikes will come in or not.”
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