Economists see 35 bps rate hike, then a pause: BS monetary policy poll

Some expect a slight reduction in GDP growth forecast

The Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) is likely to announce a 35-basis point (bp) hike in the repo rate on December 7, in a bid to bring headline retail inflation back to its 4 per cent target, a Business Standard poll showed.

The MPC’s next meeting is scheduled from December 5-7. Since May 4, 2022, the MPC has raised the repo rate by a total of 190 basis points to 5.90 per cent. The past three rate hikes have each been in tranches of 50 basis points.

According to a poll comprising 10 respondents, the MPC