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India’s RBI Seen Raising Rates Twice Before Weighing a Pause

  • MPC members may differ on the peak policy rate, minutes show
  • Goyal sees rates peaking, Patra and Varma favor more hikes
Pedestrians walk past the Reserve Bank of India (RBI) in Mumbai, India, on Tuesday, March 3, 2020. RBI Governor Shaktikanta Das said he's ready to act to shield the economy from the coronavirus and reiterated there's room to cut interest rates if needed.
Pedestrians walk past the Reserve Bank of India (RBI) in Mumbai, India, on Tuesday, March 3, 2020. RBI Governor Shaktikanta Das said he's ready to act to shield the economy from the coronavirus and reiterated there's room to cut interest rates if needed.Photographer: Kanishka Sonthali/Bloomberg

India’s monetary policy makers will likely raise interest rates two more times before they even consider taking a breather toward the end of the year.

That’s the takeaway of several economists from the minutes of the Monetary Policy Committee’s meeting earlier this month, when the panel hiked the key rate by a half-point to 4.90% to anchor inflationary expectations. The Reserve Bank of India’s rate panel is scheduled to meet thrice more this year.