Business Standard

How much rate hike this week: 50 or 35 bps?

I would root for a 50-bps hike for now to demonstrate the RBI's resolve to fight inflation and stem deprecation of the rupee. Then it can cross the river by feeling the stones


Tamal Bandyopadhyay
A July 17 report by Hyun Song Shin, economic adviser and head of research, Bank for International Settlements, titled “Inflation and the path of soft landing” says front-loaded rate increases are more likely to result in a soft landing than back-loaded rate increases.

In a recent speech in Delhi, the Reserve Bank of India (RBI) Governor Shaktikanta Das has said, “Our endeavour has been to ensure a soft landing.”

The three-day meeting of the Indian central bank’s rate-setting body, Monetary Policy Committee (MPC), ends on Friday. It’s given that the RBI will go for a rate hike, but the question
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Jul 31 2022 | 6:37 PM IST

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