Fed hike, high crude could push RBI towards tighter policy: Experts

‘Fed’ up with inflation? US rate hike leaves RBI with an October-or-December dilemma, economists say

The US Federal Reserve’s first rate hike since 2023 has added to pressure on India, with the rupee breaching 96 against the dollar and economists increasingly debating when the RBI could follow with a hike of its own. Emkay sees an October move as increasingly likely, while HDFC Bank expects the central bank could wait until December as it weighs inflation, growth, energy prices and currency pressures.

Fed hike, high crude could push RBI towards tighter policy: Experts

Timing of any domestic rate increase remains uncertain; another US hike possible in 2026