See 25 bps hikes in CRR, Repo rate: HSBC

Robert Prior-Wandesforde, Senior Asian Economist, HSBC Holdings feels that the Wholesale Price Index, or WPI will move up to 15% by CY08. He expects a 25 bps hike each in repo rate and CRR in the policy next week along with a 100 bps hike in rates from the current levels. He believes that inflation is likely to peak at 15% in CY08 and added that the 10-year bond yield will touch 10.5%. According to him, the Rupee will be in 41.5-43 to a dollar range and moreover he does not expect downgrade in sovereign credit... [read full story]