RBI to announce its bi-monthly monetary policy today
Reserve Bank of India will announce its bi-monthly monetary policy today. Experts expect a moderate interest rate hike of 25 to 35 basis points as inflation has started showing signs of easing. State Bank of India Group Chief Economic Advisor Soumya Kanti Ghosh said, we expect the RBI to hike rates in smaller magnitude. He said, a 35 basis points repo rate hike looks imminent.
The current policy repo rate is 5.9 per cent. RBI has hiked key benchmark lending rate by 50 basis points thrice since June with an aim to check inflation. Retail inflation is showing signs of modertaion but still remains above the central bank’s upper tolerance level of 6 per cent since January this year. The inflation dropped to 6.77 per cent in October, mainly due to easing prices in the food basket.
