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Hike interest rates by 25-35 basis points in Dec: Economists to RBI

The meeting was held ahead of the RBI's next monetary policy review, which is scheduled December 5-7

The RBI was at the forefront of providing stimulus to the economy last year, while the Narendra Modi-led government followed with modest fiscal steps

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Latest data showed, however, that inflation has eased, while still remaining well above the RBI’s 4 per cent target and the MPC’s 2-6 per cent tolerance band

Bhaskar Dutta Mumbai

4 min read Last Updated : Nov 25 2022 | 11:20 PM IST

Economists on Friday suggested top officials of the Reserve Bank of India to raise interest rates by 25-35 basis points (bps) next month while continuing to signal vigilance on inflation, sources told Business Standard.

The meeting was held ahead of the RBI’s next monetary policy review, which is scheduled December 5-7.

The economists also recommended that the RBI maintain its current stance of remaining “focused on withdrawal of accommodation,” sources said.

“Today, most people were recommending a 25-35 bp rate hike and for them (the RBI) to speak hawkish. Hike less but speak hawkish. They also recommended that the stance

Topics : Inflation Reserve Bank of India RBI Interest rate hike monetary policy Indian Economy Consumer Price Index monetary policy committee US Inflation CPI Inflation

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