Reserve Bank of India to Increase the Repo Rate by 25 bps to 6.50% in Feb.

A survey of economists indicated that Reserve Bank of India (RBI) is likely to hike its ‘ interest rates by mild 25 basis-point increase to 6.50% at the meeting 1 week from Delhi’s February 1 budget.

The Reserve Bank of India (RBI) is anticipat to pause next, hoping for inflation to decline.

Rates were expected to stay at 6.50% through the end of 2023, according to the median projection.

The RBI needs to take a break from time to assess the precise effects of the past monetary tightening on inflation and economic growth

The government of Prime Minister Modi are expect to prioritise effectively reducing the fiscal deficit. But instead increasing spending with in last budget before the general election in 2024.

A weakening global economic outlook means that India’s outlook will revise down in the coming months.