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Will RBI Moderate Rate Hikes?

By Renju Jaya   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

The Reserve Bank of India is set to deliver a less aggressive rate hike and switch to a 'neutral' policy stance this week as the central bank weigh the effect of an apparent easing in inflationary pressures on an economy struggling to gain momentum.

The six-member Monetary Policy Committee, led by RBI Governor Shaktikanta Das, is widely expected to raise the repo rate by at least 35 basis points from the current 5.90 percent. This would mark the fifth consecutive rate hike.

Governor Das is set to release the Monetary Policy statement at 10:00 AM Indian time on December 7. (11.30 PM ET on December 6).

The Reserve Bank has raised rates by a cumulative 190 basis points since May to combat high inflation and to counter the spillover effects from the policy normalization in advanced economies.

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