Morning Buzz: RBI may pause interest rate hikes; rise of spot airfares, and more

Here are the top business headlines this morning, to get your day started

Published: Jun 5, 2023 09:32:29 AM IST

Updated: Jun 6, 2023 09:49:27 AM IST

Reserve Bank of India is likely to take a wait and watch approach to an interest rate hike this week. Image: Shutterstock

RBI may pause interest rate hikes

With inflation coming below the 6 percent band, the Reserve Bank of India (RBI) is likely to take a wait and watch approach to an interest rate hike this week. A poll of 16 economists conducted by the Economic Times was unanimous in voting for a pause this week. Post the Monetary Policy Committee meet all eyes are likely to shift back the Federal Reserve, which has one meeting each scheduled in June and July.

(Economic Times, Hindu Business Line, Business Standard, Mint)

Also read: RBI's uneasy pause: The art and science of monetary policy in uncertain times

Spot airfares rise three times in the last month

Last minute tickets bought on busy routes like Delhi- Mumbai, Mumbai-Bengaluru, Delhi-Bengaluru, Delhi-Kolkata among others have seen a price three times higher than a month ago. This is on account of flyers booked with the grounded GoAir being forced to make last minute bookings. The average number of daily domestic flights in May was down 4.6 percent. However, for tickets bought more than 30 days in advance the hike has been marginal.

(Business Standard)

Also read: Go First has flown into heavy turbulence. Can it fly out of it now?

Rates for 3-year fixed deposits fall

Amid rising liquidity large banks have started cutting rates for fixed deposits of up to three years. This is also on account of the fact that they expect the Reserve Bank to hold rates in June. Punjab National Bank, ICICI Bank, Axis Bank and Union Bank are among those who have cut rates in the last fortnight. The cuts range between 5-20 bps. At the same time smaller banks as well as small finance banks continue to offer elevated rates.

(Hindu BusinessLine)

India may give UK preferential access to the passenger vehicle market

As the contours of the India-UK trade deal start to emerge one area where India may make concessions is in the car market. It is proposed that India allows for 100,000 cars to be imported from the UK under a concessional tariff with tariffs being eliminated in five years. India closed FY23 with a 3.89 percent rise in PV sales to 3.89 million units. It is unclear what India will get in return for this as the country has steadfastly refused to cut auto tariffs during other trade negotiations in the past.

(Business Standard)

Also read: Four-day work week: Is India ready for it?

Workers feel at home with hybrid offices

Most workers believe that hybrid offices work better for them from a psychological safety perspective as well as for their work-life balance. According to a survey women were more prone to feel safer at home. Employees also pointed out that they would be more willing to take risks, express ideas and concerns, ask questions from their home environment.

(Times of India)