Experts’ Poll: RBI May Hike Rates by 0.25% in October Policy Amid Inflationary Pressures
A PTI poll of 16 economists and bankers sees a hawkish shift as August inflation hit 4.82% and price pressures widened.
- A PTI poll of 16 economists and bankers expects the Reserve Bank of India to hike the repo rate by 0.25% at the October 7, 2026, monetary policy review amid mounting inflationary pressure.
- Mounting inflationary pressure driven by the re-escalation of the West Asia crisis and global rate hikes has pushed India's retail inflation to an eight-month high of 4.82% in August.
- Rajani Sinha, chief economist at Careedge Ratings, reported that price pressures are broad-based, with "around 19% of the 358 items in the CPI basket" recording inflation above 6% in August, up from 13% in March.
- Experts broadly anticipate a hawkish policy tone and potential upward revision to FY27 GDP growth forecasts, with many predicting two to three total rate hikes over the fiscal year.
- Gaura Sengupta, an economist at IDFC First Bank, stated a rate hike is necessary for "gradual normalisation of policy" to ensure real interest rates do not turn negative in coming quarters.
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11 Articles
The repo rate was last hiked in February 2023, when the RBI raised the repo rate by 0.25 per cent to 6.50 per cent.
New Delhi (Uttam Hindu News): The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is scheduled to meet next week. Ahead of the meeting, economists believe that the Central… The post Major alert ahead of RBI's MPC meeting: Interest rates may rise prematurely appeared first on uttamhindu.com.
New Delhi, Oct 4 (IANS) The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is scheduled to meet next week. Ahead of the meeting, economists believe the central bank may begin raising interest rates. Initially expected in December, the hike is now projected to begin in October. According to Bank of America (BofA), rising energy prices, food inflation, and widespread inflationary pressures are likely to lead to a 25 basis point (bp…
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