MPC likely to raise repo rate significantly in upcoming meetings: S&P

Says there is significant slack in the economy, as GDP is far below estimates of pre-Covid trajectory of potential output

Global rating agency S&P on Tuesday said it expects “significant”  increases in the policy rates by the Reserve Bank of India’s (RBI) monetary policy committee (MPC) at its upcoming meetings. The assessment comes a week ahead of the MPC’s three-day meeting.

“Largely in response to high inflation, the Reserve Bank of New Zealand has been among the most hawkish developed market central banks, having started hiking its policy rate in October 2021. Starting from a higher level, the Reserve Bank of India started lifting rates later. But we expect significant additional increases in policy rates there,” the rating agency said