Expect a repo rate hike in April: IDFC MF

IDFC MF expects a repo rate hike in April, Suyash Choudhary, head-fixed income, told CNBC-TV18.

He further said that given the current assessment of inflation trajectory as well as prospects of global volatility, the RBI may have to start to move from April and by then there will be enough evidence that the economic growth is self-sustaining one way or the other.

Talking about the household inflation survey, he said that IDFC MF’s inflation assessment is different from what RBI has put on the table.

Next to inflation, the most important number economists track is inflation expectations. And that's why RBI's household inflations expectations survey is important.

The logic is if people believe that prices are going to rise, they will push up prices -landlords will ask for 10 percent more rents every renewal, workers will ask for 10 percent more wages, just to stay at the same level. That’s why the monetary policy committee (MPC), RBI and economists monitor inflation expectations closely.

RBI conducts this survey one in two months and the latest, which was published yesterday, December 8, was done from October 25-November 3.

For more details, watch the video