Why Urjit Patel could go for another repo rate hike in August review

The Reserve Bank of India last week raised interest rates for the first time since 2014 and also revised its inflation forecast for the fiscal year 2019

Inflation picked up in India for a second straight month, giving ammunition to the central bank to further tighten monetary policy and squeezing returns for bond investors.

Consumer prices rose 4.87 percent in May from a year earlier, the statistics ministry said in a statement in New Delhi on Tuesday. That was broadly in line with the 4.9 percent median estimate of 41 economists surveyed by Bloomberg. It was the highest reading since January and comes on the back of rising food and fuel prices.

“The inflation numbers will keep the RBI on its toes and may take us closer