Reserve Bank can hike repo rate to 6% by December, say economists

The RBI rate hike expectations come despite economists predicting a moderation in inflation due to slump in global commodities and easing supply chain bottlenecks

Economists see India’s central bank raising interest rates through December, taking the repurchase rate to 6% by the end of this year, the latest Bloomberg survey shows.

After cumulative hikes of 140 basis points in three moves since May, economists pencil in another 35 basis-point hike in the September monetary policy review, and a quarter-percentage point increase in December, bringing the main interest rate to 6%. A previous survey estimated the repo rate to reach 6% by the end of June 2023. 

The rate hike expectations come despite economists predicting a moderation in inflation due to slump in