It appears from the Graph 1 (below) that RBI follows FED hikes with some lag. But once RBI starts to hike/cut rate it try to match the trend of FED.
In Graph 2, shows how the movement in policy rate of RBI and FED are reasonably synchronized with lag.
This also reinforce the expectation that we may see further RBI rate hikes probably at a higher frequency going forward with an aim at the back of RBI's mind (if not at front of their mind) to match the trend in FED rate.
In Graph 2, shows how the movement in policy rate of RBI and FED are reasonably synchronized with lag.
This also reinforce the expectation that we may see further RBI rate hikes probably at a higher frequency going forward with an aim at the back of RBI's mind (if not at front of their mind) to match the trend in FED rate.