'Status Quo' or 'Last hike': What will be RBI's decision in the last monetary policy of FY23?
The rate hike cycle in FY23 began in May 2022, when RBI hiked the policy rate by 40 bps. This followed a 50 bps hike three times in a row between June to October policies, until RBI softened its rate hike to 35 bps in December 2022 policy.
All eyes are set on RBI who will be presenting the last bi-monthly monetary policy of FY23 on Wednesday. With inflation staying well below the central bank's tolerance limit for two months straight, the majority of experts are predicting a 25 bps rate hike in the coming policy. But if we look beyond the rate hike size conundrum, there are more important factors that we need to watch out for.