RBI Monetary Policy: RBI may increase interest rates marginally, which may be announced on Wednesday

Regarding the next monetary policy of the Reserve Bank of India, experts have speculated that the central bank may increase the interest rates marginally. According to experts, amid signs of moderation in retail inflation and the need to prop up growth, the Reserve Bank may opt for a 25-35 bps hike in the repo rate in its upcoming monetary policy review on Wednesday. Explain that the Reserve Bank of India (RBI) will present its next bi-monthly policy review on December 7 at the end of the three-day meeting of the Monetary Policy Committee (MPC) starting from Monday.

Banking sector experts said on Friday that the Reserve Bank's six-member monetary policy committee may increase the repo rate by 0.25-0.35 percent. However, RBI may refrain from increasing the repo rate thereafter. In the previous meeting (September 30), the Reserve Bank had increased the repo rate by 0.50 percent to control retail inflation.

The Reserve Bank of India (RBI) had earlier increased the repo rate by 0.40 percent in May, 0.50 percent in June and 0.50 percent in August, and 0.50 percent in September. In this way, in the financial year 2022-23, the RBI has increased the repo rate by 1.90 percent from May till now, which has increased to the current level of 5.90 percent.

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