RBI Likely to Hike Repo Rate by 25 Bps to 5.50% in October Policy: ET Poll
Twenty of 21 economists and bank executives polled by ET expect the RBI to lift the repo rate to 5.50% as food and oil prices climb.
- The Reserve Bank of India's Monetary Policy Committee begins its meeting today, with 20 of 21 economists polled by ET expecting a 25 basis point repo rate hike to 5.50%, with the decision announced on October 7.
- Inflationary pressures stem from elevated crude oil prices linked to the West Asia conflict and patchy monsoon rains impacting farm output, reversing economists' expectations from the August meeting.
- Brent crude ended September around $103, exceeding the RBI's FY27 forecast of $85, while June quarter GDP growth reached 7.8%, which Yes Bank chief economist Indranil Pan said positions the economy to "withstand a moderate tightening of policy rates."
- Recent Federal Reserve rate hikes complicate India's policy stance, as the nation must compete for capital within global markets, according to Bandhan AMC fixed income CIO Suyash Choudhary.
- Bank of Baroda chief economist Madan Sabnavis holds a contrarian view, warning that a rate hike could dent festival spending while transmission remains sticky on the deposit side.
11 Articles
11 Articles
RBI MPC begins amid rising bets on a repo rate hike to 5.5%: What experts expect
The RBI's Monetary Policy Committee has begun its October meeting with markets weighing a possible 25-basis-point repo rate hike to 5.50%. Rising crude prices, firm global yields and sticky inflation have left experts split over whether the move will begin a wider tightening cycle.
RBI MPC begins meeting; rate hike likely amid inflation risks
Mumbai: The Reserve Bank’s Monetary Policy Committee began its three-day meeting on Monday, October 5 and is likely to raise rates by 25 basis points, aligning with the central banks’ hawkish stance amid escalating conflicts in West Asia that pose risks for domestic inflation. An interest rate hike by the RBI in its upcoming monetary … Get the latest updates in Hyderabad City News, Technology, Entertainment, Sports, Politics and Top Stories on W…
RBI MPC Meet: The meeting will run from October 5 to 7, and its results will be announced on October 7. This time, the focus of discussion is inflation, which remains consistently above the RBI's 4 percent target.
MPC Poll: RBI likely to hike repo rate 25 bps as crude, global yields fuel inflation risks
A Moneycontrol poll of 19 economists, treasury heads and fixed-income experts shows that a majority expect the MPC to hike the repo rate by 25 basis points to 5.5 percent while retaining inflation and growth estimates
RBI likely to hike repo rate by 25 bps to 5.50% in October policy: ET Poll
On Monday, the Reserve Bank of India's Monetary Policy Committee will hold important meetings. Analysts are anticipating a 25 basis points increase in the key interest rate, raising it to 5.50%. The surge in inflation is attributed to elevated crude oil costs and subpar agricultural production. Many economists advocate for a rate hike as a crucial measure to tackle ongoing inflation issues, with outcomes to be revealed on October 7.
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- 66% of the sources lean Right
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