The RBI could increase the policy repo rate by 40 basis points.
New Delhi:
The Reserve Bank of India (RBI) is likely to focus on raising interest rates in the coming months in a relatively short tightening cycle. In a recent interview, RBI Governor Shaktikanta Das said that expectations of a rate hike in June were “indisputable”.
Here are the live updates on the RBI policy meeting:
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Retail inflation rose to an eight-year high of 7.79% in April. It has been above 6% since January 2022.
Inflation has been above the RBI’s 2-6% target range since the start of this year.
The RBI’s six-member Monetary Policy Committee (MPC) is certain to raise policy rates as inflation has remained above the central bank’s tolerable limit over the past few months.
The RBI is likely to raise the policy repo rate by 40 basis points to 4.80% today, raising its inflation forecast for the current fiscal to above, according to market analysts and economists. 6% compared with the previous forecast of 5.7%, according to economic and market analysts. Repo rate is the rate at which the RBI lends short-term loans to banks.
