Economists See Waning Urgency for India’s RBI to Do Large Hikes

  • Citi, Barclays expect 35 basis point move at August meeting
  • Goldman lowers average inflation forecast by 10 basis points
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Economists have started paring expectations on the size of India’s future interest-rate hikes, with half-point moves seen dispensable, after consumer prices rose less than expected in June.

Citigroup Inc. economists expect a 35 basis-point increase in borrowing costs at the Reserve Bank of India’s next Monetary Policy Committee meeting in August, a move also predicted by Barclays Plc on the back of prices trending lower.