Experts see four rate hikes in FY23, beginning June: BS Poll of economists

Nearly 7% retail inflation in March may spur policy tightening

India’s retail inflation rate, which touched nearly 7 per cent in March, could trigger a series of repo rate increases by the Reserve Bank of India (RBI), a survey of economists by Business Standard has showed.

While all the participants surveyed agreed that the interest rate hike cycle could begin in June, 90 per cent of them said there could be two to eight hikes, which means interest rates might go up by 50-200 basis points (bps) in the current financial year. Half of the participants expect at least four repo rate hikes in FY23.  

Most of the participants see