Surging housing costs may prompt Reserve Bank to raise rates again

In June, the Reserve Bank of India raised rates for the first time since 2014 and revised its inflation forecast for the fiscal year 2019

The stage seems set for the Reserve Bank of India to deliver another hike in interest rates. Reason — retail inflation accelerating to a five-month high.

Thursday’s headline inflation number for the month of June will be scrutinized by the six-member monetary policy committee that will meet later this month and announce its decision August 1. The panel, which has been very vocal on the need to curb inflation, is sure to raise interest rates by 50 basis points in the next 12 months, pricing in the swap markets show.

Analysts at HSBC Holdings Plc. and ANZ Banking Group are expecting a