RBI's June meeting questions 1st repo hike in 3 years
The Reserve Bank of India, or RBI, is gearing up for its big policy meeting from June 3-5, with Governor Sanjay Malhotra set to announce the verdict on December 5.
The main question: will the repo rate (currently 5.25%) stay put or go up for the first time in three years?
Rising inflation has everyone guessing, and opinions are split.
Inflation rises to 3.5% in April
Inflation in India ticked up from 3.2% in February to 3.5% in April, thanks to pricier crude oil and uncertain monsoons.
Most experts polled think rates won't change, but a few expect a hike.
Assocham wants rates steady but hopes the RBI will help out small businesses.
Next RBI move depends on inflation
Since February 2025, the RBI cut repo rates by 125 basis points but kept them unchanged in its last two reviews.
Analysts say this next move depends on how inflation shapes up.