RBI may raise policy rates by 25bps on Friday, say economists
While a rate hike is unanimous next week, most economists expect one more hike before the end of 2018-19
The Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) may raise policy rates by 25 basis points on Friday, for the third time this year, along with a change in stance to a hawkish one, amid surging crude oil prices and weakening rupee. Of the 15 economists surveyed by Mint, 14 expect RBI to raise repo rate, the rate at which it lends to commercial banks, to 6.75%. Only one economist expects a 50 basis points hike to 7%.