MPC rate hikes likely due to crude price surge
Crisil's Dipti Deshpande indicated that rising crude prices at USD 120 and a 13% monsoon deficit are pressuring costs, suggesting imminent MPC rate hikes. However, private capex is expected to remain steady as manufacturing capacity utilization approaches 75%.
pre-market1 source ↓machine-written, see hownot a recommendation
- alongside
- 13% rainfall deficit
- capacity utilization nears
- 75%
Rising crude oil prices, now around USD 120 for the Indian basket, alongside a 13% rainfall deficit, are increasing cost pressures, prompting potential monetary tightening, according to Crisil's Dipti Deshpande. Despite these challenges, private capex is expected to remain resilient as manufacturing capacity utilization nears 75%, historically a trigger for new investments.
Not investment advice. For informational purposes only.