RBI minutes: More hawkish than expected - BBH

RBI minutes from this month’s meeting were more hawkish than expected and the markets are starting to price in potential rate hikes, suggests the analysis team at BBH.  

Key Quotes

“With inflation running above 5%, officials fretted that the 2-6% target band will be breached as fiscal policy runs too hot.  One member of the MPC noted that "Fixed income markets are telling us that we have fallen behind the curve.”  Next policy meeting isApril 5 and markets should start preparing for a possible rate hike then.”