Is there still time to park money in fixed instrument for short term? Lakshmi Iyer explains

economictimes.indiatimes.com:

«But even after all that if you see the aggregate April, May, June quarter number could well be at par with RBI's estimates. So that is a positive sign. And much of the spill over, it is not just these vegetable prices but also some of the pulses, rice, wheat, all of these are up month on month,» says Lakshmi Iyer, Kotak Investment Advisors.Do you still believe that the pause in the rate hike will be an ideal situation for RBI or you think that looking at the expectations and the huger possibility of the data to come out on a higher end also, we can see a slight rise over there?I am telling you clearly if you look at the food prices specifically, you know the tomato, onion and potato prices, they are actually over the top.

Largely led by tomato prices which if you see last month as in the May over June month, it is almost up close to 40%. And on an aggregate, if you take all these three put together, they are up almost 16 to 17%. Now that means the June inflation number over May, there could be an uptick of at least 30 to 40 bps so that is number one.

So 4.25 was the number for May and 4.5 to 4.665 could well be the number for the June. But even after all that if you see the aggregate April, May, June quarter number could well be at par with RBI's estimates. So that is a positive sign.

And much of the spill over, it is not just these vegetable prices but also some of the pulses, rice, wheat, all of these are up month on month. So the next quarter which is the July, August, September is where you could see some impact of inflation. But is it sufficient enough for RBI to hike interest rates? Well, the answer still seems to be in the negative.