RBI MPC meet: Question not whether to raise borrowing costs but by how much

With Wednesday's Monetary Policy Committee (MPC) decision following May's surprise 40 basis-point off-cycle hike, expectations have narrowed down to the size of increase to tame inflation

As India’s monetary policy makers huddle to find ways to tame inflation, the question for them is not whether to raise borrowing costs, but by how much. 
 

The six-member Monetary Policy Committee will probably raise the benchmark interest rate by 40 basis points to 4.8% on Wednesday, according to the median in a Bloomberg survey of 37 economists. As of Monday, the poll returned what is easily the most varied number of predictions for hikes, ranging from 25 basis points to 75 basis points.

With Wednesday’s policy decision following May’s surprise 40 basis-point off-cycle hike, expectations have