RBI falls in line with global central banks

Another rate hike in June is on the cards. The question is: How much? Could it be 75 bps at one go or staggered over the next two meetings?

Every analyst swears today that on June 8, at the end of the three-day meeting of the Monetary Policy Committee (MPC), Indian central bank’s rate-setting body, there will be another rate hike. There is no consensus though on the quantum of the hike.

Will it be 75 basis points (bps)? Or, will the Reserve Bank of India (RBI) stagger it over two MPC meetings in June and August to raise the repo rate to the pre-pandemic level of 5.15 per cent? Or, will it take even longer to do so? No betting, but I will not be surprised if it