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Mark Mobius cautions RBI, says increasing rates now would be 'big mistake'

Most economists in a Bloomberg News survey expect the RBI to raise the report rate by 25 basis points on Aug 1

Mark Mobius
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Mark Mobius

Anirban Nag | Bloomberg
The Reserve Bank of India (RBI) will make a "big mistake" if it raises interest rates this week, according to veteran emerging markets investor Mark Mobius. 

His view goes against the crowd. Most economists in a Bloomberg News survey expect the Reserve Bank of India to raise the report rate by 25 basis points on August 1, a second hike in eight weeks. The six-member monetary policy committee headed by Governor Urjit Patel began its discussions on Monday.

Headline inflation is at the highest level in five months and above the 4 per cent midpoint of the central bank's target

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First Published: Jul 30 2018 | 9:57 PM IST

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