Mumbai: The Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) is expected to hike the repo rate by another 35 basis points (bps) to 6.25 per cent in December 2022 and then hit the pause button, said Kotak in a report.
“We expect repo rate hike of 35 bps in the December policy to 6.25 per cent and then pause. Through the next couple of policies, the RBI will assess (1) any further upward surprise in rate hike trajectory from the Federal Reserve, (2) inflation trajectory which is expected to revert back to below 6 per cent, (3) impact of past monetary tightening on the growth-inflation dynamics, and (4) geopolitical risks,” the report added.
The MPC had recently hike the repo rate by 50 bps to 5.90 per cent.
