Don''t expect RBI to hike rates tomorrow: HSBC

Robert Prior-Wandesforde, senior Asian economist, HSBC Holdings Plc, expects no changes in interest rates tomorrow. He thinks RBI is not done with tightening, and that he sees a further 50 bps CRR hike in June.

He expects WPI data to start falling from here on. RBI may also issue hawkish statement in credit policy, he says. It may pause for the rest of the year after another hike.

HSBC sees further rupee strength with a little RBI intervention.

CNBC-TV18 shares with domain-b its exclusive interview with Prior-Wandesforde.

The street is a bit divided and confused on what to expect from the Reserve Bank tomorrow. What would you say?
I am not surprised really. The added confusion here is the fact that the Reserve Bank obviously tightened rates at the end of last month. We do not expect any change in interest rates at tomorrow''s meeting.

But we certainly are not arguing that the Reserve Bank has finished raising rates yet. We are actually looking for a further move, a 50 basis points hike in the CRR, probably in between meetings, perhaps sometime in June.