Most economists see 50-bp repo rate hike: Business Standard policy poll

FY23 inflation projection may go above 6%; liquidity steps anticipated

A majority of the participants in a poll conducted by Business Standard expects the six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) to raise the policy rate, or the repo rate, by 50 bps to 4.9 per cent this week.

Six of the 10 polled expect a hike of 50 basis points (bps) while the rest said it could be 35-40 bps.

In a surprise off-cycle meeting in early May, the MPC decided to raise the interest rate for the first time in four years — by 40 bps — after the inflation situation deteriorated owing