Beginning its discussions, the RBI’s monetary policy committee isanticipating a modest rate increase

On December 5, the rate-setting panel of the Reserve Bank of India (RBI) began strategizing
for the upcoming round of monetary policy amid forecasts of a mild interest rate hike of
25–35 basis points due to the beginnings of lowering inflation and tapering of economic
Following a three-day Monetary Policy Committee (MPC) meeting, RBI Governor
Shaktikanta Das will announce the bimonthly monetary policy on December 7.
In a research report published on Monday by Group Chief Economic Adviser Soumya Kanti
Ghosh, the largest lender in India, State Bank of India (SBI), stated, “We expect the RBI to
hike rates in smaller magnitude in December policy attuned to emerging market central banks
and the overall rate setting tone. A 35-bps increase in the repo rate seems likely. At 6.25%,
we think it might be the current terminal rate. The policy repo rate at the moment is 5.9%.


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