India Central Bank May Raise Interest Rates Today, Survey Shows
India’s central bank may raise interest rates today, a Bloomberg News survey showed, after inflation accelerated last month.
The Reserve Bank of India will probably increase its repurchase rate by a quarter-point to 6.75 percent, all 26 economists in the survey said. It may boost the reverse repurchase rate to 5.75 percent from 5.5 percent, according to 25 of 26 forecasts, with one predicting no change. The RBI is due to announce the decision on its website at noon in Mumbai.
India’s inflation unexpectedly quickened to 8.31 percent in February. Price gains in the South Asian nation are still “sticky” and high, and the central bank may increase borrowing costs in the near future, Standard & Poor’s Ratings Services said yesterday.
Governor Duvvuri Subbarao on Jan. 25 raised rates for the seventh time in a year and pledged to persist with an “anti- inflationary monetary stance.” The RBI aims to keep inflation in a range of 4 percent to 4.5 percent.
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