Immediate rate hike by RBI unlikely: Gajendra Nagpal, Unicon Financial Solutions

Gajendra Nagpal, CEO, Unicon Financial Solutions, in a chat with ET Now talks about the anticipated rate hike by RBI.

Do you expect a rate hike from RBI or do you think that noise from food price inflation is going to get them or do you think they will just leave it alone?

You asked me a question for which obviously there is no direct answer. They have been making noises about a possible increase in interest rates and obviously inflation figures have been one major account on which they can take a stance and they can obviously push interest rate hike. But I still believe that the recovery is still too nascent for us to have that kind of a measure from RBI.

They will start to make some hawkish noises and we have been hearing about those hawkish noises of late but monsoon has been progressing fairly well and food inflation has come slightly down over in the last figure that we have heard. So to that extent, I believe that with abundance of Rabi crop also coming in, RBI would have this feeling that food inflation is going to get curtailed over a period of time and they would want to wait for a few weeks more before they make the final announcement.

Though there have been all kinds of talk going on, I personally believe that it’s not going to come immediately.