Central banks, including RBI, may raise interest rates to combat inflation

ECB President Christine Lagarde has already said the bank till hike rates, if needed

The current mood among central banks, including the Reserve Bank of India (RBI), seems to be to continue increasing rates till inflation is back in the comfort zone.  

According to a Bank of Baroda note, a slew of macro indicators in the US have increased the probability of a higher Federal Reserve rate in the near term.

Core personal consumption expenditure deflator – a measure of the spending on goods and services (excluding food and energy) by people of the United States – rose by 0.6 per cent in January 2023 against an estimated 0.4 per cent on month-on-month (MoM)