RBI's surprise hawkish pivot spurs economists to move up rate calls

The Indian central bank’s unexpected signal that it’s heading toward exiting easy monetary policy is prompting some economists to revise their outlooks on the timing and number of rate hikes this year.

Citigroup Inc. now sees the Reserve Bank of India’s rate lift-off happening in August, as opposed to an October timing it had earlier predicted, while HSBC Holdings Plc sees two moves each this year and the next, pushing the key rate to 5% by mid-2023, versus a previous outlook of 4.5% by end-March.

The RBI surprised markets Friday by saying it now prioritizes tackling inflation over supporting economic growth, shifting