'Inflation Concern to Stay; RBI May Up Rates by 75 Bps'


New Delhi, May 22 (PTI) Global banking giant Goldman Sachs has said it expects inflation to remain high this summer and the Reserve Bank is likely to further hike interest rates by 75 basis points or more this calender year.

"The April print and the February revision confirms our view that inflation will remain uncomfortably high for the RBI through the summer...We continue to expect an above consensus 75 basis points in rate hikes in the remainder of 2011," Goldman Sachs said in its latest issue of 'Asia Economics Data Flash'.

Headline inflation in April stood at 8.66 per cent. It has remained above the 8 per cent mark since January 2010.

Further, the inflation figure for February has been revised upward to 9.54 per cent from the provisional estimate of 8.31 per cent.

  

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Title: 'Inflation Concern to Stay; RBI May Up Rates by 75 Bps'



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