RBI likely to go for smaller rate hikes as inflation eases: Analysts

The Reserve Bank of India is likely to opt for a 35 basis points (bps) rate hike at its policy meeting in December, after three consecutive 50 bps increases, as inflation eased in October and is likely to dip further, analysts said.

The RBI has already raised rates by 190 bps since May, to 5.90%, as it battles to reign in inflation that has stayed above its 2%-6% tolerance band for ten straight months now. Its Monetary Policy Committee (MPC) will next meet on Dec. 7.

Still, inflation eased to a three-month low of 6.77% in October from a five-month high of