Economists expect RBI to hike policy rates by 35-50 bps in December 2022
Despite imminent slowdown, economists expect the Reserve Bank of India (RBI) to continue with rate hikes, reported Economic Times. According to HSBC India and Indonesia’s chief economist Pranjul Bhandari, the RBI may opt for a 50 basis points hike in December 2022 to lower inflation and restore external balances. IDFC First Bank economist Gaura Sen Gupta is also looking forward to a 50 bps rate hike next month. Barclays Capital’s chief economists Rahul Bajoria expects the central bank to deliver a 35 bps hike in December 2022, before it shifts to a neutral stance. He believes that a strong growth trajectory should support an RBI rate hike to contain inflation.