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Economics
Central Banks

India Heads for Its Third Half-Point Hike as Rupee Slumps

  • 50-basis point hike seen by 34 of 46 economists surveyed
  • RBI must sound hawkish, rupee is biggest concern: analyst
Outside the Reserve Bank of India (RBI) in Mumbai.

Outside the Reserve Bank of India (RBI) in Mumbai.

Photographer: Kanishka Sonthali/Bloomberg
Updated on

India’s central bank is expected to increase its policy rate by half a point for the third time in a row as the currency’s plunge to a record low this month complicates the battle against inflation.

The Reserve Bank of India’s six-member monetary policy committee will raise its repurchase rate by 50 basis points to 5.9%, according to 34 of 46 economists surveyed by Bloomberg as of Thursday. Eleven forecast the rate will rise by 35 basis points to 5.75%, while one sees a quarter-point increase.