Business Standard

High inflation to compel RBI to signal neutral policy stance: S&P

The RBI will likely raise the repo rate by at least 50-75 basis points through FY23, and by another 50 basis points in FY24, the ratings agency said

RBI, Reserve Bank of India
Premium

Photo: Shutterstock

Nikunj Ohri New Delhi
The Reserve Bank of India (RBI) would be compelled to signal a neutral policy stance in the Monetary Policy Committee’s review meeting in April as average consumer inflation is likely to stay firm at 5.4 per cent in FY23, S&P Global Ratings said in a note. 

The RBI will likely raise the repo rate by at least 50-75 basis points through fiscal year 2023, and by another 50 basis points in fiscal 2024, the ratings agency said.

Separately, Moody’s Analytics said if the US Federal Reserve accelerates its path to policy normalisation, the RBI may have little choice but to

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 28 2022 | 3:42 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com