Central Banks
India Seen Raising Key Rate to 6.75% in 2Q to Tame Inflation
Headline consumer prices have fallen below 7% from September last year, but unexpectedly surged above the RBI’s 6% target ceiling in January.
Photographer: Anindito Mukherjee/BloombergThis article is for subscribers only.
The Reserve Bank of India is set to lift its benchmark interest rate by another quarter-point to tame inflation that accelerated faster than expected last month, according to a Bloomberg survey of economists.
The central bank is expected to hike the repurchase rate to 6.75% between April-June, before easing to the current level of 6.5% in the fourth quarter, the survey showed. A previous poll had forecast the rate to remain at a peak of 6.5% until the first quarter of next year.