A 'no-brainer': RBI governor Shaktikanta Das on expected rate hike in June

Says have entered another phase of 'coordinated action' between fiscal and monetary authorities

Reserve Bank of India (RBI) Governor Shaktikanta Das made it amply clear on Monday that the monetary policy committee (MPC) during its meeting in early June will look at increasing the policy rate or the repo rate once again, after the 40 basis points off-cycle hike in May, to bring down headline inflation that has remained above the central bank’s upper tolerance limit for four months.

“I have said that one of the reasons for the off-cycle meeting in May was that we did not want a much stronger action in June. The expectation of a rate hike is a no-brainer.